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The game of trading jobs for emissions

  • Arto, I.
  • Rueda-Cantuche, J.M.
  • Andreoni, V.
  • Mongelli, I.
  • Genty, A.

Following the debate on the implications of international trade for global climate policy, this paper introduces the topic of the economic benefits from trade obtained by exporting countries in relation to the emissions generated in the production of exports. In 2008, 24% of global greenhouse gas (GHG) emissions and 20% of the employment around the world were linked to international trade. China “exported” 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embodied in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international climate negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries producing the goods exported to developed countries.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 66 (2014)
Issue (Month): C ()
Pages: 517-525

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Handle: RePEc:eee:enepol:v:66:y:2014:i:c:p:517-525
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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  1. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
  2. ZhongXiang Zhang, 2012. "Who should bear the cost of China’s carbon emissions embodied in goods for exports?," Mineral Economics, Springer, vol. 24(2), pages 103-117, June.
  3. Erik Dietzenbacher & Bart Los & Robert Stehrer & Marcel Timmer & Gaaitzen de Vries, 2013. "The Construction Of World Input-Output Tables In The Wiod Project," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 71-98, March.
  4. José Manuel Rueda-Cantuche & Nuno Sousa & Valeria Andreoni & Iñaki Arto, 2013. "The Single Market as an Engine for Employment through External Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 51(5), pages 931-947, 09.
  5. 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.
  6. Arik Levinson & M. Scott Taylor, 2004. "Unmasking the Pollution Haven Effect," NBER Working Papers 10629, National Bureau of Economic Research, Inc.
  7. Muradian, Roldan & O'Connor, Martin & Martinez-Alier, Joan, 2002. "Embodied pollution in trade: estimating the 'environmental load displacement' of industrialised countries," Ecological Economics, Elsevier, vol. 41(1), pages 51-67, April.
  8. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
  9. 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.
  10. Munksgaard, Jesper & Pedersen, Klaus Alsted, 2001. "CO2 accounts for open economies: producer or consumer responsibility?," Energy Policy, Elsevier, vol. 29(4), pages 327-334, March.
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