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Is it in China's interest to implement an export carbon tax? / Xin Wang, Ji Feng Li et Ya Xiong Zhang. Idées pour le débat N°06/2011. Iddri, 2011.  22 p.http://www.iddri.org/Publications/Collections/Idees-pour-le-debat/ID_1106_wang-li-zhang_export-carbon-tax.pdfPrésentation (© IDDRI) :Considering the dual context of China’s domestic willingness to have a  cleaner export structure and the widespread concern among developed  countries that carbon leakage from developing countries, particularly  China, could threaten their own climate policy effectiveness, this paper  uses the SICGE model to investigate the economic rationale of taxing  direct CO2 emissions of export in China.With an export carbon tax set at 200 Yuan/t CO2 (roughly 22 euro/t CO2),  three policy scenarios were studied, where the tax revenue is:  undistributed; redistributed neutrally to stimulate investment; and  redistributed neutrally to stimulate consumption. According to the  model, the economic and climate effects of the different policy  scenarios are not particularly distinguishable.The economic impacts are slightly negative while the effect on the  export structure is significant: the export of major energy-intensive  products decreased and the export of certain sectors (labour-intensive  or with higher value-added) increased, resulting in a cut of 3.6% in  total direct CO2 emissions from exports. Given that major CO2 emissions  reduction is generated from iron and steel, basic chemical, glass and  non-ferrous metal sectors, the export carbon tax could also be  implemented on these sectors in order to reduce the tax management cost.The revenue redistribution to stimulate consumption is shown to be the  optimal scenario choice, which was confirmed by further sensitivity  tests. By reviewing related WTO laws, this paper concludes that a  clearly designed export carbon tax with a comparable carbon price is in  China’s own interest, while lessening the carbon leakage concerns of  developed countries.