IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Trade Policy to Control Climate Change: Does the Stick Beat the Carrot?

Listed author(s):
  • Susanne Dröge
  • Claudia Kemfert

Trade and climate change policies are closely related. We consider in a general equilibrium model the role of trade restrictions and energy-efficient technology transfers for the stabilisation of the Kyoto climate coalition. We find that a trade restriction policy leads to economic losses for a large number of countries and would not be suited to convince the United States to return to the Kyoto Protocol. The technology transaction via trade, however, induces major positive economic effects for participating economies as well as considerable reductions in emissions. Therefore, the claim that trade restrictions should be used as a stick to force countries to cooperate in climate change control is not supported in this study. Rather, the benefits of R&D spill-overs should be used as an incentive to promote participation. Internationaler Handel und Klimapolitik sind eng miteinander verknüpft. Mithilfe eines allgemeinen Gleichgewichtsmodells untersuchen wir, welche Rolle Handelseinschränkungen sowie Transfers von energieeffizienten technischen Innovationen für die Stabilisierung der Klimapolitik unter dem Kyoto-Protokoll spielen können. Handelseinschränkungen führen zu einer Verschlechterung der Handelsbilanz für die Mehrzahl der Länder und Regionen weltweit. Sie sind daher nicht geeignet, die USA zu einer Rückkehr in die Klimakoalition zu bewegen. Der Transfer neuer Technologien führt hingegen zu positiven ökonomischen Effekten in den beteiligten Ländern und darüber hinaus reduziert er auch stärker die Emissionen. Die Forderung, Klimaschutz durch Handelsrestriktionen zu erzwingen, kann somit nicht unterstützt werden. Vielmehr sollten technologische Kooperationen als Anreiz eingesetzt werden.

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:
Download Restriction: no

Article provided by DIW Berlin, German Institute for Economic Research in its journal Vierteljahrshefte zur Wirtschaftsforschung.

Volume (Year): 74 (2005)
Issue (Month): 2 ()
Pages: 235-248

in new window

Handle: RePEc:diw:diwvjh:74-2-10
Contact details of provider: Postal:
Mohrenstraße 58, D-10117 Berlin

Phone: xx49-30-89789-0
Fax: xx49-30-89789-200
Web page:

More information through EDIRC

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.:

in new window

  1. Georg Muller-Furstenberger & Martin Wagner & Benito Muller, 2005. "Exploring the Carbon Kuznets Hypothesis," Others 0506009, EconWPA.
  2. Frank Biermann & Rainer Brohm, 2005. "Border Adjustments on Energy Taxes: A Possible Tool for European Policymakers in Implementing the Kyoto Protocol?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(2), pages 249-258.
  3. Kemfert, Claudia, 2004. "Climate coalitions and international trade: assessment of cooperation incentives by issue linkage," Energy Policy, Elsevier, vol. 32(4), pages 455-465, March.
  4. Brewer, Thomas L & Young, Stephen, 1998. "Investment Issues at the WTO: The Architecture of Rules and the Settlement of Disputes," Journal of International Economic Law, Oxford University Press, vol. 1(3), pages 457-470, September.
  5. Dr Ge, Susanne & Trabold, Harald & Biermann, Frank & B Hm, Fr D Ric & Brohm, Rainer, 2004. "National climate change policies and WTO law: a case study of Germany's new policies," World Trade Review, Cambridge University Press, vol. 3(02), pages 161-187, July.
  6. Marzio Galeotti & Claudia Kemfert, 2004. "Interactions between Climate and Trade Policies: A Survey," Working Papers 2004.88, Fondazione Eni Enrico Mattei.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:diw:diwvjh:74-2-10. 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: (Bibliothek)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.