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Trade and Climate Change: The Challenges Ahead

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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 UNFCC showed a shift from a top-down approach with a collective target favoring environmental objectives to a bottom-up accord favoring political feasibility, with no meaningful binding agreement in sight, as the global climate regime and the global trade policy regime represented by the WTO appear to be on a collision course. Following a review of the alternative architectures for the next Climate Change Agreement, the paper outlines four areas in which trade will play a role: as a purveyor of technological transfer; as a mechanism to separate where abatement takes place from who bears the cost of abatement; as a participation mechanism; and as a way to address the pressures for border adjustments. Political-economy considerations are invoked to predict that a target system with a carbon credit system will be preferable to a carbon tax or to a portfolio system of treaties.

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Bibliographic Info

Paper provided by FERDI in its series Working Papers with number P14.

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Date of creation: Oct 2010
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Handle: RePEc:fdi:wpaper:668

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References

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Citations

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Cited by:
  1. Jaime de MELO, 2012. "Trade in a ‘Green Growth’ Development Strategy Global Scale Issues and Challenges," Working Papers P48, FERDI.
  2. Nicole A. MATHYS & Jaime de MELO, 2011. "The Political Economy of Climate Change Policies: Political Economy Aspects of Climate Change Mitigation Efforts," Working Papers P24, FERDI.
  3. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
  4. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
  5. Onder, Harun, 2012. "Trade and Climate Change: An Analytical Review of Key Issues," World Bank - Economic Premise, The World Bank, issue 86, pages 1-8, August.
  6. Nicole A. MATHYS & Jaime de MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers P37, FERDI.
  7. 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," Working Papers P21, FERDI.
  8. 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.
  9. Rahel Aichele, 2013. "Trade, Climate Policy and Carbon Leakage - Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 49.

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