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CO2 Emissions Embodied in International Trade — A Comparison on BRIC Countries

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  • Laike Yang
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    Abstract

    International trade has strong impacts on climate change. Trade can act as a strong factor for some countries to transfer their own Green House Gas (GHG) emissions to their trade partners. In the last decade, BRIC countries (Brazil, Russia, India and China) have witnessed the highest economic growth rates as well as the fastest expansion in trade. Within the same time span they also emerged as the world’s largest GHG emitting countries. Now, the question arises, is this increase in pollution in BRIC countries due to international trade? Are these countries becoming so called global “pollution havens� In this article, I use the single region input-output analysis model to assess the CO2 emissions embodied in trade in BRIC countries, and also identify if there are carbon leakages in these countries. The result shows that due to its massive export of manufacturing products, China has emitted a huge amount of CO2. Russia also has a big imbalance on trade embodied CO2 emission mainly due to its massive export of energy products. However, the paper finds that the increase in Brazil’s CO2 emissions is not related to trade but to land-use and agriculture and India actually benefits from the trade flow, environmentally.

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    File URL: http://finance-and-trade.htw-berlin.de/fileadmin/working_paper_series/wp_03_2012_Yang_CO2-Emissions-BRIC.pdf
    File Function: First version, 2012
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    Bibliographic Info

    Paper provided by Hochschule fuer Technik und Wirtschaft, Berlin in its series Competence Centre on Money, Trade, Finance and Development with number 1203.

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    Length: 18 pages
    Date of creation: May 2012
    Date of revision:
    Publication status: Published in Berlin Working Papers on Money, Finance, Trade and Development, May 2012
    Handle: RePEc:mtf:wpaper:1203

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    Web page: http://finance-and-trade.htw-berlin.de

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    Keywords: working paper; daadpartnership; finance-and-trade;

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    References

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    1. 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.
    2. Erik Dietzenbacher & Kakali Mukhopadhyay, 2007. "An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(4), pages 427-449, April.
    3. Satoshi Nakano & Asako Okamura & Norihisa Sakurai & Masayuki Suzuki & Yoshiaki Tojo & Norihiko Yamano, 2009. "The Measurement of CO2 Embodiments in International Trade: Evidence from the Harmonised Input-Output and Bilateral Trade Database," OECD Science, Technology and Industry Working Papers 2009/3, OECD Publishing.
    4. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
    5. Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
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