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Climate Change and Trade Facilitation: Estimating Greenhouse Gas Emission Savings from Implementation of Cross-Border Paperless Trade in Asia and the Pacific

Author

Listed:
  • Yann Duval
  • Simon Hardy

Abstract

The Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific entered into force in February 2021. While economic benefits associated with paperless trade facilitation are well known, little attention has been paid to measuring the potential environmental benefits. Accordingly, this article sets out to quantify the amount of greenhouse gas emissions that could be saved if all trade-related paper documents in the region are ultimately replaced by digital documents and data exchange, as foreseen in the regional framework agreement. This is carried out by combining detailed descriptions of trade transactions, data on trading volumes and relevant emission factors. Even with conservative assumptions, the emissions saved by fully digitalising a single end-to-end trade transaction are equivalent to planting 1.5 trees. For the Asia-Pacific, this implies savings of about 13 million tons of CO 2 e annually, equivalent to the carbon absorbed by 400 million trees. The results are driven by efficiency gains from handling data digitally rather than by the direct savings of paper and ink. JEL Codes: F18, H83, Q56

Suggested Citation

  • Yann Duval & Simon Hardy, 2021. "Climate Change and Trade Facilitation: Estimating Greenhouse Gas Emission Savings from Implementation of Cross-Border Paperless Trade in Asia and the Pacific," Journal of Asian Economic Integration, , vol. 3(2), pages 190-210, September.
    • Handle: RePEc:sae:jfasei:v:3:y:2021:i:2:p:190-210
    DOI: 10.1177/26316846211035567
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    References listed on IDEAS

    as
    1. Y. Duval & T. Wang & C. Utoktham & A. Kravchenko, 2019. "Next-generation Trade Facilitation for Asian Integration: Cross-border Paperless Trade," Journal of Asian Economic Integration, , vol. 1(1), pages 11-31, April.
    2. T. W. Crowther & H. B. Glick & K. R. Covey & C. Bettigole & D. S. Maynard & S. M. Thomas & J. R. Smith & G. Hintler & M. C. Duguid & G. Amatulli & M.-N. Tuanmu & W. Jetz & C. Salas & C. Stam & D. Piot, 2015. "Mapping tree density at a global scale," Nature, Nature, vol. 525(7568), pages 201-205, September.
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    More about this item

    Keywords

    International trade; trade facilitation; environment; digitisation; climate change;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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