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Reconciling Trade and Climate Policies

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  • Nicole A. MATHYS

    (Office fédéral suisse de l'énergie (OFEN))

  • Jaime de MELO

    ()
    (Ferdi)

Abstract

The outcome of the 15th conference of the Parties to the UNFCCC in Copenhagen showed a shift from a top-down approach with a collective target favoring environmental objectives to a bottom-up accord favoring political feasibility. There is no meaningful binding agreement in sight, also because the global climate regime and the global trade policy regime appear to be on a collision course. Following a review of the challenges ahead, the paper argues that trade will have a second-order contribution to world-wide CO2 emissions. Evidence shows increasing carbon transfers through trade, but the magnitude of carbon leakage effects may be less than feared in some circles.

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Bibliographic Info

Paper provided by FERDI in its series Working Papers with number P37.

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Date of creation: Feb 2012
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Handle: RePEc:fdi:wpaper:502

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  1. Henrik Horn & Petros C. Mavroidis, 2011. "To B(TA) or Not to B(TA)? On the Legality and Desirability of Border Tax Adjustments from a Trade Perspective," The World Economy, Wiley Blackwell, vol. 34(11), pages 1911-1937, November.
  2. Nicole A. MATHYS & Jaime de MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.
  3. Lin, Boqiang & Li, Xuehui, 2011. "The effect of carbon tax on per capita CO2 emissions," Energy Policy, Elsevier, vol. 39(9), pages 5137-5146, September.
  4. Jean-Marie GRETHER & Nicole A. MATHYS & Jaime de MELO, 2012. "Unravelling the Worldwide Pollution Haven Effect," Working Papers P40, FERDI.
  5. Gallagher, Kelly Sims, 2006. "Limits to leapfrogging in energy technologies? Evidence from the Chinese automobile industry," Energy Policy, Elsevier, vol. 34(4), pages 383-394, March.
  6. Messerlin, Patrick A., 2010. "Climate change and trade policy : from mutual destruction to mutual support," Policy Research Working Paper Series 5378, The World Bank.
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  8. Corrado Di Maria & Edwin van der Werf, 2006. "Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change," Working Papers 2006.94, Fondazione Eni Enrico Mattei.
  9. Khanna, Madhu & Zilberman, David, 2001. "Adoption of energy efficient technologies and carbon abatement: the electricity generating sector in India," Energy Economics, Elsevier, vol. 23(6), pages 637-658, November.
  10. Yan Dong & John Whalley, 2008. "Carbon, Trade Policy, and Carbon Free Trade Areas," NBER Working Papers 14431, National Bureau of Economic Research, Inc.
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  12. Rahel Aichele & Gabriel Felbermayr, 2011. "Kyoto and the Carbon Footprint of Nations," Ifo Working Paper Series Ifo Working Paper No. 103, Ifo Institute for Economic Research at the University of Munich.
  13. Michael O. Moore, 2011. "Implementing Carbon Tariffs: A Fool’s Errand?," The World Economy, Wiley Blackwell, vol. 34(10), pages 1679-1702, October.
  14. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
  15. David Wheeler & Saurabh Shome, 2010. "Less Smoke, More Mirrors: Where India Really Stands on Solar Power and Other Renewables," Working Papers id:2492, eSocialSciences.
  16. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
  17. Kellenberg, Derek K., 2008. "A reexamination of the role of income for the trade and environment debate," Ecological Economics, Elsevier, vol. 68(1-2), pages 106-115, December.
  18. Nancy Birdsall & Arvind Subramanian, 2009. "Energy Needs and Efficiency, Not Emissions: Re-framing the Climate Change Narrative," Working Papers 187, Center for Global Development.
  19. Lovely, Mary & Popp, David, 2011. "Trade, technology, and the environment: Does access to technology promote environmental regulation?," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 16-35, January.
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