Advanced Search
MyIDEAS: Login to save this paper or follow this series

Trade and Climate Change: The Challenges Ahead

Contents:

Author Info

  • Nicole A. MATHYS

    (Swiss Federal Office of Energy (SFOE))

  • 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/P14_Mathys_deMelo_web.pdf
Download Restriction: no

Bibliographic Info

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

as in new window
Length:
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:fdi:wpaper:669

Contact details of provider:
Phone: +33473177542
Web page: http://ferdi.fr/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Wheeler, David, 2001. "Racing to the bottom : foreign investment and air pollution in developing countries," Policy Research Working Paper Series 2524, The World Bank.
  2. Lopez, Ramon E. & Islam, Asif M., 2008. "Trade and the Environment," Working Papers 45982, University of Maryland, Department of Agricultural and Resource Economics.
  3. Mendelsohn, Robert & Dinar, Ariel & Williams, Larry, 2006. "The distributional impact of climate change on rich and poor countries," Environment and Development Economics, Cambridge University Press, vol. 11(02), pages 159-178, April.
  4. Cole, Matthew A. & Elliott, Robert J. R., 2003. "Determining the trade-environment composition effect: the role of capital, labor and environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 363-383, November.
  5. Jean-Marie Grether & Nicole Mathys & Jaime de Melo, 2009. "Scale, Technique and Composition Effects in Manufacturing SO 2 Emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 257-274, June.
  6. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
  7. Warwick J. McKibbin & Peter J. Wilcoxen, 2009. "The Economic And Environmental Effects Of Border Tax Adjustments For Climate Policy," CAMA Working Papers 2009-09, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  8. de Melo, Jaime & Grether, Jean-Marie & Mathys, Nicole Andréa, 2006. "Unravelling the World-Wide Pollution Haven Effect," CEPR Discussion Papers 5815, C.E.P.R. Discussion Papers.
  9. Ben Lockwood & John Whalley, 2008. "Carbon Motivated Border Tax Adjustments: Old Wine in Green Bottles?," NBER Working Papers 14025, National Bureau of Economic Research, Inc.
  10. Cole, Matthew A. & Elliott, Robert J.R. & Shimamoto, Kenichi, 2005. "Industrial characteristics, environmental regulations and air pollution: an analysis of the UK manufacturing sector," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 121-143, July.
  11. Di Maria, C. & Werf, E.H. van der, 2005. "Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change," Discussion Paper 2005-68, Tilburg University, Center for Economic Research.
  12. Frankel, Jeffrey & Rose, Andrew K., 2003. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," Working Paper Series rwp03-038, Harvard University, John F. Kennedy School of Government.
  13. Smarzynska, Beata K., 2001. "Pollution havens and foreign direct investment : dirty secret or popular myth?," Policy Research Working Paper Series 2673, The World Bank.
  14. Susmita Dasgupta & Ashoka Mody & Subhendu Roy & David Wheeler, 2001. "Environmental Regulation and Development: A Cross-country Empirical Analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 29(2), pages 173-187.
  15. M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers 106, Massachusetts Institute of Technology (MIT), Department of Economics.
  16. Acemoglu, Daron & Aghion, Philippe & Bursztyn, Leonardo & Hemous, David, 2011. "The Environment and Directed Technical Change," CEPR Discussion Papers 8660, C.E.P.R. Discussion Papers.
  17. MANAGI Shunsuke & HIBIKI Akira & TSURUMI Tetsuya, 2008. "Does Trade Liberalization Reduce Pollution Emissions?," Discussion papers 08013, Research Institute of Economy, Trade and Industry (RIETI).
  18. Fischer, Carolyn & Fox, Alan K., 2009. "Comparing Policies to Combat Emissions Leakage: Border Tax Adjustments versus Rebates," Discussion Papers dp-09-02, Resources For the Future.
  19. Lopez, Ramon, 1997. "Environmental externalities in traditional agriculture and the impact of trade liberalization: the case of Ghana," Journal of Development Economics, Elsevier, vol. 53(1), pages 17-39, June.
  20. Copeland,B.R. & Taylor,M.S., 2000. "Free trade and global warming : a trade theory view of the Kyoto protocol," Working papers 4, Wisconsin Madison - Social Systems.
  21. Matthieu Glachant & Antoine Dechezleprêtre & Yann Ménière, 2010. "What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data," Working Papers 2010.12, Fondazione Eni Enrico Mattei.
  22. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
  23. Karp, Larry & Zhao, Jinhua, 2008. "A Proposal for the Design of the Successor to the Kyoto Protocol," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt35n7x8mt, Department of Agricultural & Resource Economics, UC Berkeley.
  24. World Bank, 2007. "Warming Up to Trade? Harnessing International Trade to Support Climate Change Objectives," World Bank Other Operational Studies 7749, The World Bank.
  25. Gielen, Dolf & Moriguchi, Yuichi, 2002. "CO2 in the iron and steel industry: an analysis of Japanese emission reduction potentials," Energy Policy, Elsevier, vol. 30(10), pages 849-863, August.
  26. Josh Ederington & Arik Levinson & Jenny Minier, 2005. "Footloose and Pollution-Free," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 92-99, February.
  27. Hotte, Louis & Long, Ngo Van & Tian, Huilan, 2000. "International trade with endogenous enforcement of property rights," Journal of Development Economics, Elsevier, vol. 62(1), pages 25-54, June.
  28. Karp, Larry & Zhao, Jinhua, 2009. "Suggestions for the Road to Copenhagen," CUDARE Working Paper Series 1085, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  29. Managi, Shunsuke & Kumar, Surender, 2009. "Trade-induced technological change: Analyzing economic and environmental outcomes," Economic Modelling, Elsevier, vol. 26(3), pages 721-732, May.
  30. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
  31. Cadarso, María-Ángeles & López, Luis-Antonio & Gómez, Nuria & Tobarra, María-Ángeles, 2010. "CO2 emissions of international freight transport and offshoring: Measurement and allocation," Ecological Economics, Elsevier, vol. 69(8), pages 1682-1694, June.
  32. Aldy, Joseph, 2005. "Per Capita Carbon Dioxide Emissions: Convergence or Divergence?," Discussion Papers dp-05-53, Resources For the Future.
  33. Messerlin, Patrick A., 2010. "Climate change and trade policy : from mutual destruction to mutual support," Policy Research Working Paper Series 5378, The World Bank.
  34. Ordás Criado, C. & Grether, J.-M., 2011. "Convergence in per capita CO2 emissions: A robust distributional approach," Resource and Energy Economics, Elsevier, vol. 33(3), pages 637-665, September.
  35. Christa N. Brunnschweiler & Erwin H. Bulte, 2009. "Natural resources and violent conflict: resource abundance, dependence, and the onset of civil wars," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 651-674, October.
  36. Maxime Kennett & Ronald Steenblik, 2005. "Environmental Goods and Services: A Synthesis of Country Studies," OECD Trade and Environment Working Papers 2005/3, OECD Publishing.
  37. Bhagwati, Jagdish & Mavroidis, Petros C., 2007. "Is action against US exports for failure to sign Kyoto Protocol WTO-legal?," World Trade Review, Cambridge University Press, vol. 6(02), pages 299-310, July.
  38. David Pearce & Charles Palmer, 2001. "Public and private spending for environmental protection: a cross-country policy analysis," Fiscal Studies, Institute for Fiscal Studies, vol. 22(4), pages 403-456, December.
  39. Wyckoff, Andrew W. & Roop, Joseph M., 1994. "The embodiment of carbon in imports of manufactured products : Implications for international agreements on greenhouse gas emissions," Energy Policy, Elsevier, vol. 22(3), pages 187-194, March.
  40. Damien Demailly & Philippe Quirion, 2006. "CO2 abatement, competitiveness and leakage in the European cement industry under the EU ETS: Grandfathering vs. output-based allocation," Post-Print halshs-00639327, HAL.
  41. Ho, Mun S. & Morgenstern, Richard & Shih, Jhih-Shyang, 2008. "Impact of Carbon Price Policies on U.S. Industry," Discussion Papers dp-08-37, Resources For the Future.
  42. Nancy Birdsall & Arvind Subramanian, 2009. "Energy Needs and Efficiency, Not Emissions: Re-framing the Climate Change Narrative," Working Papers 187, Center for Global Development.
  43. Aichele, Rahel & Felbermayr, Gabriel, 2010. "Kyoto and the carbon content of trade," FZID Discussion Papers 10-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  44. Weber, Christopher L. & Peters, Glen P. & Guan, Dabo & Hubacek, Klaus, 2008. "The contribution of Chinese exports to climate change," Energy Policy, Elsevier, vol. 36(9), pages 3572-3577, September.
  45. Bouwe R. Dijkstra & Anuj J. Mathew, 2009. "Liberalizing Trade in Environmental Goods," Faculty Working Papers 16/09, School of Economics and Business Administration, University of Navarra.
  46. Roland Ismer & Karsten Neuhoff, 2007. "Border tax adjustment: a feasible way to support stringent emission trading," European Journal of Law and Economics, Springer, vol. 24(2), pages 137-164, October.
  47. Paul Brenton & Gareth Edwards-Jones & Michael Friis Jensen, 2009. "Carbon Labelling and Low-income Country Exports: A Review of the Development Issues," Development Policy Review, Overseas Development Institute, vol. 27(3), pages 243-267, 05.
  48. John P. Weyant, Francisco C. de la Chesnaye, and Geoff J. Blanford, 2006. "Overview of EMF-21: Multigas Mitigation and Climate Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 1-32.
  49. Nancy Birdsall & Jan von der Goltz, 2009. "It’s One Climate Policy World Out There—Almost," Working Papers 195, Center for Global Development.
  50. Jiahua Pan & Jonathan Phillips & Ying Chen, 2008. "China's balance of emissions embodied in trade: approaches to measurement and allocating international responsibility," Oxford Review of Economic Policy, Oxford University Press, vol. 24(2), pages 354-376, Summer.
  51. Warwick J. McKibbin & Peter J. Wilcoxen, 2009. "The Economic And Environmental Effects Of Border Tax Adjustments For Climate Policy," CAMA Working Papers 2009-09, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  52. van Beers, Cees & van den Bergh, Jeroen C J M, 1997. "An Empirical Multi-country Analysis of the Impact of Environmental Regulations on Foreign Trade Flows," Kyklos, Wiley Blackwell, vol. 50(1), pages 29-46.
  53. Reyer Gerlagh & Onno Kuik, 2007. "Carbon Leakage with International Technology Spillovers," Working Papers 2007.33, Fondazione Eni Enrico Mattei.
  54. 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.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Nicole A. MATHYS & Jaime de MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers P37, FERDI.
  2. 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.
  3. 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.
  4. 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.
  5. 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, 8.
  6. Jaime de MELO, 2012. "Trade in a ‘Green Growth’ Development Strategy Global Scale Issues and Challenges," Working Papers P48, FERDI.
  7. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
  8. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
  9. 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.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fdi:wpaper:669. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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