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International trade and carbon leakage

Author

Listed:
  • Rahel Aichele
  • Gabriel Felbermayr

Abstract

A criticism of the Kyoto Protocol is that emissions from international specialisation and trade could be shifted to non-Kyoto countries (carbon leakage). The analysis of sectoral import flows and the associated CO2 imports show that the Kyoto countries increase their import volume from non-Kyoto countries and that CO2 imports rise by an average of 8%, with energy-intensive sectors, such as metal products and paper goods, being particularly affected. Consequently, the international policy community should devote more attention to how a CO2 marginal compensation tax could be implemented in conformance with WTO regulations.

Suggested Citation

  • Rahel Aichele & Gabriel Felbermayr, 2011. "International trade and carbon leakage," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(23), pages 26-30, December.
    • Handle: RePEc:ces:ifosdt:v:64:y:2011:i:23:p:26-30
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    References listed on IDEAS

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    5. Rahel Aichele & Gabriel Felbermayr, 2015. "Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 104-115, March.
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    More about this item

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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