Many countries have cut their corporate tax rates in the past decades to attract foreign investment. To prevent this, a global minimum tax policy was approved by OECD countries in 2021. Global changes in corporate tax rates could reshape production and investment networks while impacting welfare and global emission patterns. Here we develop a theoretical multi-country multi-industry general equilibrium model and show that global corporate tax competition during 2005–2016 would increase global carbon emissions and shift more emissions to developing economies. Implementing a global minimum tax rate of 15% would reduce global carbon emissions and effectively decrease the developing economies’ emissions. The results highlight that corporate tax policies should be coordinated with climate regulations. This is a preview of subscription content, access via your institution Access options Access Nature and 54 other Nature Portfolio journals Get Nature+, our best-value online-access subscription $29.99 / 30 days cancel any time Receive 12 print issues and online access $209.00 per year only $17.42 per issue Rent or buy this article Prices vary by article type from$1.95 to$39.95 Prices may be subject to local taxes which are calculated during checkout References Madiès, T., Tarola, O. & Taugourdeau, E. Tax haven, pollution haven or both? Int. Tax Public Finance 29, 1527–1560 (2022). Article Google Scholar Iovino, L., Martin, T. & Sauvagnat, J. Corporate taxation and carbon emissions. SSRN https://doi.org/10.2139/ssrn.3880057 (2021). Abe, K. & Zhao, L. Endogenous international joint ventures and the environment. J. Int. Econ. 67, 221–240 (2005). Article Google Scholar Copeland, B. R. & Taylor, S. M. Trade and the Environment. Theory and Evidence (Princeton Univ. Press, 2003). Cai, X., Lu, Y., Wu, M. & Yu, L. Does environmental regulation... |