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Impacts of China Coal Import Tariff against US on Global Economy and CO2 Emissions

Septiyas Trisilia, Mustika and Widodo, Tri (2019): Impacts of China Coal Import Tariff against US on Global Economy and CO2 Emissions.

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Abstract

This paper examines the impacts of China coal import tariff against US on global economy and CO2 emissions. Using Global Trade Analysis Project Environmental (GTAP-E) model, coal import tariff was found to generate trade deflection and trade depression phenomena. Then, US and China’s would have welfare loss, but Indonesia and Australia would seem gainers from this tariff war. Furthermore, skilled and unskilled labor will decline in coal’s industry in US and increase in China. Finally, it is also found evidence that China coal import tariff was not good policy because not only the global economy, the environment would be disadvantaged by increasing CO2.

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