The Effect of Auto Tariff Protections on CO2 Emissions

According to released official statistics of greenhouse gas emissions in 2010, CO2, which is produced by fossil fuels and industrial processes, accounts for 65 percent of total global greenhouse gas emissions. The transport sector, in turn, is responsible for 23% of CO2 emissions. Researchers have been claiming that car manufacturers have not made significant efforts to reduce the pollution levels of their products, due significant government support policies, especially high tariff rates. It is also known that many developing countries impose high tariffs on car imports. In order to investigate the effect of tariffs on vehicle emissions, this paper analyzes the impact of vehicle tariffs on CO2 emissions of cars  in a panel of 20 selected car importing countries during the years 2005-2013. The results indicate that increased vehicle tariff protection in the selected countries has led to an increase in carbon dioxide emissions. The China-South Korean policy model of tariff cuts, combined with environmentally supportive policies can be a good example for Iranian policymakers.