IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v129y2024ics0140988323006862.html
   My bibliography  Save this article

Explaining the direction of emissions embodied in trade from hypotheses based on country rankings11Funding information: Bingqian Yan received financial support from the National Natural Science Foundation of China under grant no. 71903195

Author

Listed:
  • Dietzenbacher, Erik
  • Yan, Bingqian

Abstract

We examine theories that take environmental aspects into account to explain exports and imports. They use a ranking of countries and the typical prediction in the case of bilateral trade is that the higher-ranked country (of the two) gains from extra trade whilst the lower-ranked country loses. Gains and losses are expressed in terms of the net emissions embodied in trade. The two best-known theories are the Pollution Haven Hypothesis (PHH) and the Factor Endowment Hypothesis (FEH). Using data for 40 countries (or regions), we have a set of 780 country-pairs. Only 32% of the predictions with PHH and 37% of the predictions with FEH turn out to be correct. Our next step is to start at the other end and ask which ranking of countries would have had the most correct predictions. It turns out that the success rate of the optimal ranking of countries is only 61%. The implication is that even the optimal ranking (or theory) performs poorly.

Suggested Citation

  • Dietzenbacher, Erik & Yan, Bingqian, 2024. "Explaining the direction of emissions embodied in trade from hypotheses based on country rankings11Funding information: Bingqian Yan received financial support from the National Natural Science Founda," Energy Economics, Elsevier, vol. 129(C).
    • Handle: RePEc:eee:eneeco:v:129:y:2024:i:c:s0140988323006862
    DOI: 10.1016/j.eneco.2023.107188
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988323006862
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2023.107188?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    International trade; Emissions embodied in trade; Pollution haven; Factor endowment; Input-output analysis; Triangularization;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:129:y:2024:i:c:s0140988323006862. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.