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WEI Shoudao, WANG Qianyuan:Research on the Effects of Environmental Policies of North and South Countries ——Based on the Game Analysis of Carbon Tax and Carbon Tarif

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Abstract:Faced by the fact that the developing and developed countries take comparative advantages in trade and carbon emission reduction respectively, three game models are constructed where only the developed country carries out carbon tax policy, the developed countrylevies carbon tariff tax, both the developed country and the developing country carries out carbon tax policy successivelyWith equilibriums of all these models, welfare effect, trade effect and environmental effect are analyzed by comparing equilibriums of models in which the developed country levies carbon tariff tax and only the developed country carries out carbon tax policy in advance, then all these three effects are also analyzed by comparing equilibriums of models in which the developed country levies carbon tariff tax and both the developed country and the developing country carry out carbon tax policy successivelyIts shown that the developed country levying carbon tariff tax can lead to obvious welfare effect, trade effect and environment effect to itself, obvious environment effect to the developing country and the world, but ambiguous welfare effect and no trade effect to the developing countryIts also shown that under certain conditions, the developing country carrying out carbon tax policy can lead to welfare effect, trade effect and a high possibility of environment effect to itself, but low possibility of environment effect to the worldAs to the developed country, the developing country carrying out carbon tax policy can lead to a high possibility of welfare effect, but no trade effect and environment effectFinally, some suggestions are put forward for both North and South Countries.

Key words: Carbon Tariff    Carbon Tax    Welfare Effect

source:Finance & Trade Economics ,No.11,2015