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Carbon tariffs may spell disaster for textile exports
Jul '10
The dynamic CGE model simulates the production, export and employment status of 15 industrial production sectors by using two scenarios of carbon tariffs at US $30 standard and $60 standard, respectively.

In the scenario of imposing carbon tariff at the rate of $30 in the first year, industrial exports would decline 3.53 percent, total output would fall 0.62 percent. In the next year, exports would decline 3.01 percent, total output would fall 0.49 percent.

In the scenario of imposing carbon tariff by $60 standard, in the first year, exports would decline 6.95 percent, total output would fall 1.22 percent; in the second year, exports would reduce 5.97 percent, total output would fall 0.97 percent.

In the scenario of imposing carbon tariff by US $30 standard, Chinese manufacturing industry would take more than 5 years to gradually digest the negative impact of carbon tax on production and more than 7 years to gradually eliminate the impact on exports.

Production of textile industry would decrease 1.60 percent in case of being imposed $30 carbon tariff rate and if $60 carbon tariff rate was to be imposed, production would reduce 3.18 percent.

Fibre2fashion News Desk

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