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Energy and CO2 emission relationships in the NAFTA trading bloc: a multi-regional multi-factor energy input–output approach

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  • Zeus Guevara
  • Edmundo Molina-Pérez
  • Edith X. M. García
  • Vanessa Pérez-Cirera

Abstract

The North-America Free Trade Agreement (NAFTA) has brought together the economies of Canada, Mexico, and the US into forming one of the largest trading blocs worldwide (within the top CO2 emitters). However, the current global protectionist discourse threatens the agreement. This paper analyzes the energy and energy-related CO2 emission relationships between NAFTA countries in 2014 to gain insights into the climate change implications of current integration and the possible cancelation of the agreement. The analysis is performed with a multi-regional version of the multi-factor energy input–output model. The results show that NAFTA has not built a single integrated energy system, though it has helped reduce energy-related CO2 emissions. Moreover, if NAFTA is not revoked, further integration would depend on the capacity of the Mexican energy sector to converge to the performance of its trade partners’ energy sectors. Conversely, a broken deal would induce negative environmental externalities.

Suggested Citation

  • Zeus Guevara & Edmundo Molina-Pérez & Edith X. M. García & Vanessa Pérez-Cirera, 2019. "Energy and CO2 emission relationships in the NAFTA trading bloc: a multi-regional multi-factor energy input–output approach," Economic Systems Research, Taylor & Francis Journals, vol. 31(2), pages 178-205, April.
  • Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:178-205
    DOI: 10.1080/09535314.2018.1528212
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    Cited by:

    1. Carfora, Alfonso & Pansini, Rosaria Vega & Scandurra, Giuseppe, 2022. "Energy dependence, renewable energy generation and import demand: Are EU countries resilient?," Renewable Energy, Elsevier, vol. 195(C), pages 1262-1274.
    2. Aramendia, Emmanuel & Heun, Matthew K. & Brockway, Paul E. & Taylor, Peter G., 2022. "Developing a Multi-Regional Physical Supply Use Table framework to improve the accuracy and reliability of energy analysis," Applied Energy, Elsevier, vol. 310(C).
    3. Guevara, Zeus & Henriques, SofiaTeives & Sousa, Tânia, 2021. "Driving factors of differences in primary energy intensities of 14 European countries," Energy Policy, Elsevier, vol. 149(C).
    4. Haider Mahmood, 2020. "CO2 Emissions, Financial Development, Trade, and Income in North America: A Spatial Panel Data Approach," SAGE Open, , vol. 10(4), pages 21582440209, October.
    5. Rocco, Matteo V. & Guevara, Zeus & Heun, Matthew Kuperus, 2020. "Assessing energy and economic impacts of large-scale policy shocks based on Input-Output analysis: Application to Brexit," Applied Energy, Elsevier, vol. 274(C).
    6. Usubiaga-Liaño, Arkaitz & Arto, Iñaki & Acosta-Fernández, José, 2021. "Double accounting in energy footprint and related assessments: How common is it and what are the consequences?," Energy, Elsevier, vol. 222(C).

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