reduce world carbon emissions. We analyze the effects of carbon tariffs on trade, welfare and carbon emissions in a multi …Carbon tariffs are one prominently discussed environmental policy. The proponents stress the carbon tariffs' ability to …-sector, two-factor gravity model. The introduction of carbon tariffs reduces welfare in most countries, but the effect tends to be …

.g. most favored nation tariffs) and on the exporter side (e.g. export subsidies), even in the presence of exporter and …-supply elasticity and of the import-demand elasticity. We demonstrate the effectiveness of our techniques in the case of MFN tariffs and …