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On the Interpretation and Measurement of Technology-Adjusted Emissions Embodied in Trade

Author

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  • Aldy Darwili

    (Delft University of Technology)

  • Enno Schröder

    (Delft University of Technology)

Abstract

We propose a new method for standardizing the production technology at the world average level and derive interpretations for the resulting carbon emission concepts. The technology-adjusted emission balance measures net weak carbon leakage defined as the difference between the foreign emissions avoided by exports and the foreign emissions generated by imports. We use global multi-regional input–output tables to document the variable’s spatio-temporal variation for 49 economies between 1995 and 2015. There is a positive cross-country correlation between net leakage and per-capita income. Changes in net leakage are generally small and do not account for country-specific emission trends, that is, domestic emission decreases were not offset by foreign emission increases.

Suggested Citation

  • Aldy Darwili & Enno Schröder, 2023. "On the Interpretation and Measurement of Technology-Adjusted Emissions Embodied in Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 65-98, January.
    • Handle: RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00725-7
    DOI: 10.1007/s10640-022-00725-7
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