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Impact Analysis of Carbon Tariff on China’s Textile and Garment Industry Export Trade

Author: WangNanNan
Tutor: ZhangNaiLi
School: Shandong University
Course: World economy
Keywords: Carbon Tariff Carbon Emission the Textile and Garment Industry the Computable General Equilibrium Model
CLC: F224
Type: Master's thesis
Year: 2012
Downloads: 632
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In the context of the issue that climate change has received increasing attention, low carbon has become the theme of economic development. Many policy measures have been proposed to inhibit the deterioration of the environment, which provide for the mandatory responsibilities of developed countries to reduce carbon emissions, while developing countries are not mandatory."The Common Differentiated Responsibilities" to developing countries is thought unfair by developed countries, and the situation that the emission reduction work will affect a country’s economic and trade development leads to the further discontent, thus the carbon tariff is proposed. The textile and garment industry is our country’s important industry of livelihood and export, China became the country with the largest textile exports in2009. However this industry has always been labeled as high pollution, energy consumption, carbon emission, low-tech and irrational industrial structure, in recent ten years the carbon emission in the export is an increasing trend If the carbon tariff were imposed, it should be reflected in export price in the form of the cost of export and then lead to a direct negative impact on the export of textile and garment industry, we can not underestimate a next chain reaction. Therefore, it is very important to figure out the carbon emission and the impacts affected by carbon tariff in the export of textile and garment industry, accelerate technological progress, optimize energy structure and upgrade the industrial structure with the opportunity of carbon tariff. The industry enterprises should achieve the emission-reduction target, overcome the bottleneck restricting its development and promote the green and consistent development of the industry with the government’s help and support.The paper aims to do a simulation analysis to get the negative impacts on the textile and garment industry export caused by the carbon tariff collection using the computable general equilibrium model. It studies the impacts of carbon tariff collection to a specific industry with a more targeted research perspective. The conclusion is the textile and garment industry’s export price, exports and industrial production would be greatly affected. The paper is divided into five parts, the first part is the introduction including the background, values, related concepts, ideas and frameworks, innovations and difficulties; the second part focuses on the theory study and literature review. It reviews the related tariff theories and its economic effects and provides the theoretic basis for the paper. Then the literature review contains six parts focusing on the research of carbon tariff, and make a conclusion about the relevant literature; the third part analyses the carbon emission in China’s textile and garment industry export, there are two indicators named carbon emissions and carbon intensity. This part calculates the amount of carbon dioxide emissions of the production and exports of textile and garment industry, and carbon intensity which takes into account both development and environment. On the whole, the carbon emission of textile and garment industry export is an increasing trend, while it has been reducing because of national policy control and technological progress in recent years; the fourth part is the main body of the thesis. The paper makes a balanced social accounting matrix according to the2007input-output table, which is the data base of the computable general equilibrium model, then quantitatively analyses the negative impacts on China’s textile and garment industry export when impose carbon tariff through adds the carbon tariff module into a static computable general equilibrium including seven departments, the carbon tariff rates ranks from﹩15/ton to﹩75/ton. The main impact indicators are export price, export volume, exports and industrial output, the last part confirms the conclusion of the thesis and provides suggestions to response to carbon tariff imposed. As a high carbon emission’s industry, China’s textile and garment industry should not only pay attention to immediate benefits and development, ignore the climate, but must achieve a virtuous cycle of development and environmental protection and the sustainable development with the government’s support.

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