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The Impact of Offshoring and Import Competition on Carbon Emissions

Author

Listed:
  • Jonathan Leisner
  • Jakob R. Munch
  • August Twile Nielsen
  • Georg Schaur

Abstract

We use Danish firm-level data to jointly examine the causal effects of offshoring and Chinese import competition on carbon emissions, output, and the emission intensity of output. Offshoring reduces firms’ emission intensity but also increases their production such that firm-level emissions do not change. Chinese import competition reduces firms’ production and their emission intensity. Next, we apply our firm-level estimates in counterfactual decompositions and in the computation of emission-leakage rates. The resulting evidence shows that offshoring leads to cleaner production in the manufacturing sector while import competition from China mostly leads to more emissions abroad.

Suggested Citation

  • Jonathan Leisner & Jakob R. Munch & August Twile Nielsen & Georg Schaur, 2026. "The Impact of Offshoring and Import Competition on Carbon Emissions," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 13(6), pages 1503-1542.
  • Handle: RePEc:ucp:jaerec:doi:10.1086/742219
    DOI: 10.1086/742219
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