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Kyoto and the carbon footprint of nations

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  • Aichele, Rahel
  • Felbermayr, Gabriel

Abstract

The carbon footprint of a country refers to the flow of CO2 emissions caused by domestic absorption (i.e., consumption and investment) activities. Trade in goods drives a wedge between the footprint and domestic emissions. We provide a new panel database on carbon footprints and carbon net trade. Using a first-differenced IV estimation strategy, we evaluate the effects of ratification of binding Kyoto commitments on the carbon footprint and emissions. Instrumenting countries' Kyoto commitment by their participation in the International Criminal Court, we show that Kyoto commitment has reduced domestic emissions in committed countries by about 7%, has not lowered carbon footprints, but has increased the share of imported over domestic emissions by about 14 percentage points. It follows that the Kyoto Protocol has had at best no effect on world-wide emissions. The results highlight the difficulties of unilateral climate policies.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 63 (2012)
Issue (Month): 3 ()
Pages: 336-354

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Handle: RePEc:eee:jeeman:v:63:y:2012:i:3:p:336-354

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Web page: http://www.elsevier.com/locate/inca/622870

Related research

Keywords: Carbon content of trade; Carbon footprint; Carbon leakage; Climate policy; Evaluation model; Instrumental variables;

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References

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Citations

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Cited by:
  1. repec:euv:dpaper:9999 is not listed on IDEAS
  2. de Melo, Jaime & Mathys, Nicole Andréa, 2012. "Reconciling Trade and Climate Policies," CEPR Discussion Papers 8760, C.E.P.R. Discussion Papers.
  3. Rahel Aichele & Gabriel Felbermayr, 2011. "Carbon Footprints," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(21), pages 11-16, November.
  4. Daniel Becker & Magdalena Brezskot & Wolfgang Peters & Ulrike Will, 2013. "Grenzausgleichsinstrumente bei unilateralen Klimaschutzmaßnahmen. Eine ökonomische und WTO-rechtliche Analyse," Discussion Paper Series RECAP15 010, RECAP15, European University Viadrina, Frankfurt (Oder).
  5. Rahel Aichele & Gabriel Felbermayr, 2011. "Auswirkungen der Kyoto-Verpflichtungen auf Emissionen und Carbon Footprints," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(22), pages 23-26, November.
  6. Aichele, Rahel & Felbermayr, Gabriel, 2013. "Estimating the Effects of Kyoto on Bilateral Trade Flows Using Matching Econometrics," Munich Reprints in Economics 20162, University of Munich, Department of Economics.
  7. Nina Czernich, 2011. "Broadband Internet and Political Participation - Evidence for Germany," Ifo Working Paper Series Ifo Working Paper No. 104, Ifo Institute for Economic Research at the University of Munich.
  8. Rahel Aichele & Gabriel J. Felbermayr, 2011. "Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade," CESifo Working Paper Series 3661, CESifo Group Munich.
  9. Rahel Aichele & Gabriel Felbermayr, 2013. "The Effect of the Kyoto Protocol on Carbon Emissions," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(4), pages 731-757, 09.
  10. Rahel Aichele & Gabriel Felbermayr & Inga Heiland, 2014. "EEG und internationaler Wettbewerb: Ist die besondere Ausgleichsregelung haltbar?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 67(02), pages 23-29, 01.
  11. Christian Almer & Ralph Winkler, 2012. "The Effect of Kyoto Emission Targets on Domestic CO2 Emissions: A Synthetic Control Approach," Diskussionsschriften dp1202, Universitaet Bern, Departement Volkswirtschaft.
  12. Stratford Douglas & Shuichiro Nishioka, 2009. "International Differences in Emissions Intensity and Emissions Content of Global Trade," Working Papers 09-02, Department of Economics, West Virginia University.
  13. Narbel, Patrick A. & Isaksen, Elisabeth T., 2014. "A carbon footprint proportional to expenditure - a case for Norway?," Discussion Papers 2014/16, Department of Business and Management Science, Norwegian School of Economics.
  14. Grether, Jean-Marie & Mathys, Nicole A., 2013. "The pollution terms of trade and its five components," Journal of Development Economics, Elsevier, vol. 100(1), pages 19-31.
  15. Fredriksson, Per G. & Neumayer, Eric, 2013. "Democracy and climate change policies: Is history important?," Ecological Economics, Elsevier, vol. 95(C), pages 11-19.

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