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How Trade Sensitive Are Energy-Intensive Sectors?

Author

Listed:
  • Carolyn Fischer
  • Alan K. Fox

Abstract

For most governments looking to implement climate policy—and for interest groups looking to influence it—the effect of unilateral greenhouse gas regulation on employment, production, and emissions represents an overarching concern. Critical to improving analysis of climate policy, implications for energy-intensive, trade-exposed sectors are better empirical estimates of trade sensitivities. Ex ante analysis of climate policy and carbon leakage relies heavily on economic simulations of global trade. We estimate parameters related to trade sensitivity to help identify sectors at risk for carbon leakage and to calibrate the models used to evaluate policy alternatives for addressing these problems.

Suggested Citation

  • Carolyn Fischer & Alan K. Fox, 2018. "How Trade Sensitive Are Energy-Intensive Sectors?," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 130-135, May.
    • Handle: RePEc:aea:apandp:v:108:y:2018:p:130-35
    Note: DOI: 10.1257/pandp.20181088
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    Citations

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    Cited by:

    1. Stede, Jan & Pauliuk, Stefan & Hardadi, Gilang & Neuhoff, Karsten, 2021. "Carbon pricing of basic materials: Incentives and risks for the value chain and consumers," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 189.
    2. J. G. Fournier Gabela & F. Freund, 2023. "Potential carbon leakage risk: a cross-sector cross-country assessment in the OECD area," Climatic Change, Springer, vol. 176(5), pages 1-21, May.
    3. Xie, Shiwei & Hu, Zhijian & Wang, Jueying & Chen, Yuwei, 2020. "The optimal planning of smart multi-energy systems incorporating transportation, natural gas and active distribution networks," Applied Energy, Elsevier, vol. 269(C).
    4. Fournier Gabela, Julio G. & Freund, Florian, 2022. "Potential carbon leakage risk: A cross-sector cross-country assessment in the OECD area," Conference papers 333468, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Alessia Camplomi & Harald Fadinger & Chiara Forlati & Sabine Stillger & Ulrich J. Wagner, 2024. "Designing Effective Carbon Border Adjustment with Minimal Information Requirements. Theory and Empirics," CRC TR 224 Discussion Paper Series crctr224_2024_495v2, University of Bonn and University of Mannheim, Germany.
    6. Jakob, Michael, 2021. "Climate policy and international trade – A critical appraisal of the literature," Energy Policy, Elsevier, vol. 156(C).
    7. repec:bon:boncrc:crctr224_2024_495 is not listed on IDEAS

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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