Cited by 130Climate Change Policy and EconomicsEnergy, Environment, Economic GrowthGlobal trade and economics

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The Strategic Value of Carbon Tariffs

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Böhringer, Christoph, Carbone, Jared C., Rutherford, Thomas F.·2016·American Economic Journal: Economic Policy

DOI 10.1257/pol.20130327

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Abstract

We ask whether the threat of carbon tariffs might lower the cost of reductions in world carbon emissions by inducing unregulated regions to adopt emission controls. We use a numerical model to generate payoffs of a game in which a coalition regulates emissions and chooses whether to employ carbon tariffs against unregulated regions. Unregulated regions respond by abating, retaliating, or ignoring the tariffs. In the Nash equilibrium, the use of tariffs is a credible and effective threat. It induces cooperation from noncoalition regions that lowers the cost of global abatement substantially relative to the case where the coalition acts alone. (JEL D58, F13, F18, H23, Q54, Q58)

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Authors: Böhringer, C., Carbone, J. C., & Rutherford, T. F.
Affiliations: Chair of Economic Policy, Department of Economics, University of Oldenburg, D-26111 Oldenburg, Germany (e-mail: )
Colorado School of Mines (US)
University of Wisconsin–Madison (US)
ORCID: Carbone, Jared C.
Rutherford, Thomas F.
Venue: American Economic Journal: Economic Policy
Publisher: American Economic Association
Published: 2016-02-01
Volume: 8
Issue: 1
Pages: 28-51
ISSN: 1945-7731 (ISSN-L)
1945-774X
DOI: 10.1257/pol.20130327
OpenAlex: W3125074174
Cited by: 130
References: 42
Citations by year: 2026: 11 · 2025: 12 · 2024: 23 · 2023: 19 · 2022: 15 · 2021: 17 · 2020: 9 · 2019: 4 · 2018: 9 · 2017: 5 · 2016: 4
FWCI: 14.27
Type: journal article
Language: en
Open access: green
www.aeaweb.org
Locations: American Economic Journal Economic Policy (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Climate Change Policy and Economics
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Energy, Environment, Economic Growth
Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
Keywords: carbon tariffs, carbon leakage, international climate policy, emission reduction, coalition formation, retaliation, Nash equilibrium, credible threats

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Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

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The Strategic Value of Carbon Tariffs

Abstract

Overview

Integrity signals

Verification

Claims the paper makes

Claims other papers make about this one

Citations

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Metadata

Record

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