ABSTRACT
By tracing literatures on effectiveness of Border Tax Adjustments (BTAs) on mitigating loss of domestic competitiveness and carbon leakage, this paper analyzes effects of BTAs on China. It shows that BTAs would make China’s welfare drop a little, would cause China’s export and output fall up to one forth, especially for manufacturing products, and would be inefficient to reduce China’s carbon emission. Meanwhile, BTAs would change ratios of high energy consumption manufacturing goods and processing goods in China’s total exports. Besides, BTAs would force China to decrease energy consumption intensity and thus hinder China’s industrialization process. This paper puts forward four measures to counter effects of BTAs on China.
