Climate policy and China's external balances

IF 5.6 2区 经济学 Q1 BUSINESS, FINANCE
Shuang Zheng , Xiaohui Liu , Yue Gu
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引用次数: 0

Abstract

To explore the impact of the China Carbon Emissions Trading Exchange (CCETE) on international trade and capital flow, we develop a two-country dynamic general equilibrium model with asymmetric climate policies. We use targets of decreasing carbon emissions intensity to simulate the strengthening of the CCETE policy. We find that the strengthening of climate policy improves China's trade balance and current account. We also find that output and carbon emissions of the rest of the world with a less stringent climate policy increase (known as carbon leakage) in the short run, but decrease (known as positive externalities of climate policy) in the long run. These findings suggest that China could benefit from more stringent climate policy due to the improvement of its external balances, and the world could also benefit due to the mitigation of climate change.
气候政策与中国的对外收支平衡
为了探讨中国碳排放权交易所(CCETE)对国际贸易和资本流动的影响,我们建立了一个具有非对称气候政策的两国动态一般均衡模型。我们使用碳排放强度下降的目标来模拟 CCETE 政策的加强。我们发现,气候政策的加强改善了中国的贸易平衡和经常账户。我们还发现,在气候政策不那么严格的情况下,世界其他地区的产出和碳排放量在短期内会增加(称为碳泄漏),但在长期内会减少(称为气候政策的正外部性)。这些研究结果表明,中国可以从更严格的气候政策中受益,因为这可以改善中国的外部平衡,而世界也可以从减缓气候变化中受益。
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来源期刊
CiteScore
7.10
自引率
4.20%
发文量
85
审稿时长
100 days
期刊介绍: The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.
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