Modelling Carbon Tariffs to Reduce Global Emissions in the Agricultural Sector

Abstract

This paper reports on the application of the GTAP 8.0 model to simulate the potential effects of carbon tariffs to reduce global emissions in the agricultural sector. The results indicate that: (i) carbon tariffs could facilitate a reduction in global carbon leakage for all countries (regions) except those in the EU; (ii) the structural effects of emissions reduction reflect the differences in economic structure, energy efficiency and energy-saving and emissions reduction potential among different countries (regions); and (iii) carbon tariffs have complex effects on emissions reduction in the global agri-sector. Whilst agriculture in developed countries could achieve emissions reduction, the rest of the world, and developing countries in particular, will have slight increases in carbon emissions in agriculture.