Publication

This paper examines the effect of a hypothetical tax on carbon emission levels. It also analyzes policies under a global per capita emissions-based contraction and convergence regime with emissions trading. The author addresses the role of China in such a regime: When China joins the regime, the developing countries will benefit, while the industrialized countries will be almost unaffected. When China does not join, the regime and instead a carbon content based border tax is imposed, the industrialized countries will significantly benefit, while China will be significantly worse off.