Paris after Trump: An Inconvenient Insight

Arbeitspapier

With his announcement to pull the US out of the Paris Agreement US President Donald Trump has snubbed the international climate policy community. Key remaining parties to the Agreement such as Europe and China might call for carbon tariffs on US imports as a sanctioning instrument to coerce US compliance. Our analysis, however, reveals an inconvenient insight for advocates of carbon tariffs: given the possibility of retaliatory tariffs across all imported goods, carbon tariffs do not constitute a credible threat for the US. A tariff war with its main trading partners China and Europe might make the US worse off than compliance with the Paris Agreement but China, in particular, should prefer US defection to a tariff war.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 6531

Classification and Topics

• Classification: Wirtschaft ; Environmental Economics: Government Policy ; Computable and Other Applied General Equilibrium Models
• Subject: Paris Agreement ; US withdrawal ; carbon tariffs ; optimal tariffs ; tariff war ; computable general equilibrium

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Böhringer, Christoph ; Rutherford, Thomas F.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/167517
• Last update: 10.03.2025, 11:43 AM CET