Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 80 , 10 May 2024
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The Impact of U.S. Carbon Tariff on China’s Exports and Welfare Based on Empirical Analysis and Game Models
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Abstract
This paper will begin by formulating an optimal tariff model between China and the U.S., leading us to an equilibrium point. From this vantage point, we will deduce the consequences of U.S. tariffs on China's exports and the ramifications of U.S. carbon tariffs on China's societal welfare. Next, we will develop an economic model considering the existing China-U.S. tariffs and their trading relationship. This model will help determine the influence of U.S. tariffs on China's export volume and societal welfare. In addition, we will compute the impact of U.S. tariffs on China's societal welfare and export to the U.S., factoring in China's carbon emissions per 100 yuan of GDP, and finally, concern the industrial impact of such carbon tariffs. Third, using two distinct game models, we would probe into the viability and possibility of the U.S. levying a carbon tariff on Chinese exports. The evolutionary game models reflect real-world scenarios, which point out that the U.S. will eventually apply a carbon tariff on China. Next, the dynamic game model considers different parties, China’s government and firms, and different factors, environmental costs, and green subsidies. The model provides the circumstances in which the U.S. will levy a carbon tariff, whether China should provide a green subsidy, and whether the company should implement green production technology. Finally, we would discuss potential strategies China might adopt to navigate the challenges of the U.S. carbon tariff and examine the broader implications of such a move.
Keywords
Carbon tariff, U.S-China Trade Relationship, Empirical Model, Dynamic Game Model, Evolutionary Game Model, etc
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-419-4
- ISBN (Online)
- 978-1-83558-420-0
- Published Date
- 10 May 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/80/20241278
- Copyright
- 10 May 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited