@article{Chen:333126,
      recid = {333126},
      author = {Chen, Y.-H. Henry and Hong, Wei-Hong and Reilly, John and  Paltsev, Sergey and Chai, Hui-Chih},
      title = {Will Greenhouse Gases Mitigation Policies Abroad affect  the Domestic Economy? The Case of Taiwan},
      address = {2019},
      year = {2019},
      note = {Presented during the 23rd Annual Conference on Global  Economic Analysis (Virtual Conference); Climate Change  Economics},
      abstract = {In this study we examine that when Taiwan carries out its  national determined contribution (NDC) for the Paris  agreement, will mitigation policies abroad affect Taiwan’s  economy, which participates actively in international trade  activities and depends heavily on fossil fuel imports? To  answer this question, we apply a global computable general  equilibrium (CGE) model where Taiwan is explicitly  represented and international trade is considered. We find  that whether Taiwan will gain from foreign mitigation  efforts depends on policy stringency. Under the current  NDCs, when Taiwan accomplishes its NDC as part of a global  policy, Taiwan’s negative GDP impact is lowered compared  with unilateral implementation because, under a global  policy, producer prices for fossil fuels are suppressed,  benefitting Taiwan. Nevertheless, with further emissions  cut globally beyond the current NDCs, foreign mitigation  efforts could hurt Taiwan, as capitalizing on lower fossil  fuel prices becomes harder for Taiwan when cutting Taiwan’s  fossil fuel usage turns out indispensable, and as exports  of Taiwan drop due to weaker foreign demand. We also  evaluate the effect of U.S. withdrawal from the Paris  Agreement, and find it has minimal impacts on Taiwan’s  economy compared with the global policy scenario, as  changes in fossil fuel prices are small.},
      url = {http://ageconsearch.umn.edu/record/333126},
}