Carbon tariffs: An analysis of the trade, welfare, and emission effects

Larch, Mario; Wanner, Joschka

doi:10.1016/j.jinteco.2017.09.003

“…For this reason, some economists have recommended that a carbon tariff or carbon import tax, also known as a border carbon adjustment, be applied. Though there are considerable logistical challenges in assessing each import's carbon footprint, current estimates suggest that carbon tariffs significantly improve the effectiveness of carbon taxation and emissions reduction policies (Larch and Wanner 2017). Particularly within the mining industry, given the relatively high level of environmental disclosure, estimating per-tonne or perounce GHG emissions is not particularly difficult, making carbon tariffs applied to imports of metals and mineral concentrates a viable option.…”

Section: Border Carbon Adjustmentsmentioning

confidence: 99%

Building Resilience: A Green Growth Framework for Mobilizing Mining Investment

Sekar¹,

Lundin²,

Tucker³

et al. 2019

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“…The objectives of this appendix are to demonstrate how the aggregate structural gravity model can be extended to the sectoral level, to compare the aggregate and the sectoral gravity system, to discuss implications of moving to the sectoral level, and to present and compare two sectoral versions of the structural gravity model; one on the demand side and one on the supply side. To derive gravity on the demand side, we follow Larch and Wanner (2014) and , and to obtain a gravity system on the supply side, we follow Eaton and Kortum (2002) (see also Costinot, Donaldson and Komunjer, 2012;Caliendo and Parro, 2015;Donaldson, 2016).…”

Section: Appendix A: Structural Gravity From the Supply Sidementioning

confidence: 99%

“…In addition, in the Appendix we also follow some recent efforts to accommodate sectors in the structural gravity framework (e.g. Egger, Larch and Staub, 2012;Larch and Wanner, 2014;Caliendo and Parro, 2015;, and we derive and compare the sectoral structural gravity models on the demand side and on the supply side.…”

mentioning

confidence: 99%

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General equilibrium trade policy analysis with structural gravity

Yotov¹,

Piermartini²,

Monteiro³

et al. 2016

An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model

Self Cite

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The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a representative framework for a large class of GE models, to offer a deep analysis of the structural relationships underlying the general equilibrium gravity system, and how they can be exploited to make trade policy inferences. Second, we present and discuss a series of indexes that can be used to summarize the GE effects of trade policy. Third, we summarize the standard procedures to perform counterfactual analysis with the gravity model, and we outline recent methods to obtain theory-consistent GE effects of trade policy with a simple estimation procedure that can be performed in any statistical software package capable of estimating a poisson model (e.g. Stata). Finally, we demonstrate how gravity can be integrated with a broader class of general equilibrium models by nesting the Armington-CES model within a dynamic production superstructure with capital accumulation. JEL-Codes: F130, F140, F160.

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“…To derive gravity on the demand side, we follow Larch and Wanner (2014) and , and to obtain a gravity system on the supply side, we follow Eaton and Kortum (2002) (see also Costinot, Donaldson and Komunjer, 2012;Caliendo and Parro, 2015;Donaldson, 2016).…”

Section: Appendix A: Structural Gravity From the Supply Sidementioning

confidence: 99%

General Equilibrium Trade Policy Analysis with Structural Gravity

2016

WTO Working Papers

2

0

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The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a representative framework for a large class of GE models, to offer a deep analysis of the structural relationships underlying the general equilibrium gravity system, and how they can be exploited to make trade policy inferences. Second, we present and discuss a series of indexes that can be used to summarize the GE effects of trade policy. Third, we summarize the standard procedures to perform counterfactual analysis with the gravity model, and we outline recent methods to obtain theory-consistent GE effects of trade policy with a simple estimation procedure that can be performed in any statistical software package capable of estimating a poisson model (e.g. Stata). Finally, we demonstrate how gravity can be integrated with a broader class of general equilibrium models by nesting the Armington-CES model within a dynamic production superstructure with capital accumulation. JEL Classification Codes: F13, F14, F16

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Carbon tariffs: An analysis of the trade, welfare, and emission effects

Cited by 115 publications

References 49 publications

Building Resilience: A Green Growth Framework for Mobilizing Mining Investment

Building Resilience: A Green Growth Framework for Mobilizing Mining Investment

General equilibrium trade policy analysis with structural gravity

General Equilibrium Trade Policy Analysis with Structural Gravity

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