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Kyoto and the Carbon Footprint of Nations

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  • Rahel Aichele

    ()

  • Gabriel Felbermayr

    ()

Abstract

A country’s carbon footprint refers to the CO 2 emissions caused by domestic absorptionactivities. Trade in goods drives a wedge between the footprint and local emissions. Weprovide a panel database on carbon footprints and carbon net trade. Using a differencesin-differences IV estimation strategy, we evaluate the Kyoto Protocol’s effects on carbonfootprints and emissions. Instrumenting countries’ Kyoto commitment by their participationin the International Criminal Court, we show that Kyoto reduced domestic emissionsin committed countries by 7%, has not lowered footprints, but increased the share ofimported over domestic emissions by 17 percentage points. This indicates carbon leakage.

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Bibliographic Info

Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 103.

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Date of creation: 2011
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Handle: RePEc:ces:ifowps:_103

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Keywords: Carbon content of trade; carbon footprint; carbon leakage; evaluation model; instrumental variables;

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References

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  1. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0284, National Bureau of Economic Research, Inc.
  2. Murdoch, James C. & Sandler, Todd, 1997. "The voluntary provision of a pure public good: The case of reduced CFC emissions and the Montreal Protocol," Journal of Public Economics, Elsevier, Elsevier, vol. 63(3), pages 331-349, February.
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Citations

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Cited by:
  1. Rahel Aichele & Gabriel J. Felbermayr, 2011. "Estimating the effects of Kyoto on bilateraltrade flows using matching econometrics," Ifo Working Paper Series, Ifo Institute for Economic Research at the University of Munich Ifo Working Paper No. 119, Ifo Institute for Economic Research at the University of Munich.
  2. Rahel Aichele & Gabriel Felbermayr, 2013. "The Effect of the Kyoto Protocol on Carbon Emissions," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 32(4), pages 731-757, 09.
  3. Grether, Jean-Marie & Mathys, Nicole A., 2013. "The pollution terms of trade and its five components," Journal of Development Economics, Elsevier, Elsevier, vol. 100(1), pages 19-31.
  4. Nina Czernich, 2011. "Broadband Internet and Political Participation - Evidence for Germany," Ifo Working Paper Series, Ifo Institute for Economic Research at the University of Munich Ifo Working Paper No. 104, Ifo Institute for Economic Research at the University of Munich.
  5. Christian Almer & Ralph Winkler, 2012. "The Effect of Kyoto Emission Targets on Domestic CO2 Emissions: A Synthetic Control Approach," Diskussionsschriften, Universitaet Bern, Departement Volkswirtschaft dp1202, Universitaet Bern, Departement Volkswirtschaft.
  6. Stratford Douglas & Shuichiro Nishioka, 2010. "International Differences in Emissions Intensity and Emissions Content of Global Trade," Working Papers, Department of Economics, West Virginia University 10-19, Department of Economics, West Virginia University.
  7. Nicole A. MATHYS & Jaime de MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers, FERDI P37, FERDI.
  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. repec:euv:dpaper:9999 is not listed on IDEAS
  10. 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.
  11. Daniel Becker & Magdalena Brezskot & Wolfgang Peters & Ulrike Will, 2013. "Grenzausgleichsinstrumente bei unilateralen Klimaschutzmaßnahmen. Eine ökonomische und WTO-rechtliche Analyse," Discussion Paper Series RECAP15, RECAP15, European University Viadrina, Frankfurt (Oder) 010, RECAP15, European University Viadrina, Frankfurt (Oder).
  12. 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.
  13. Eleni Stathopoulou, 2014. "Environmental campaigns and endogenous technology choice under international oligopoly," Discussion Papers in Economics, Department of Economics, University of Leicester 14/10, Department of Economics, University of Leicester.
  14. 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.
  15. Narbel, Patrick A. & Isaksen, Elisabeth T., 2014. "A carbon footprint proportional to expenditure - a case for Norway?," Discussion Papers, Department of Business and Management Science, Norwegian School of Economics 2014/16, Department of Business and Management Science, Norwegian School of Economics.
  16. Fredriksson, Per G. & Neumayer, Eric, 2013. "Democracy and climate change policies: Is history important?," Ecological Economics, Elsevier, Elsevier, vol. 95(C), pages 11-19.

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