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International trade and Climate Change : Economic, Legal, and Institutional Perspectives

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  • World Bank

Abstract

The broad objective of this study is to analyze areas in which the climate change agenda intersects with multilateral trade obligations. The study identifies the key issues at stake, as well as possible actions -- at the national and multilateral levels -- that could help developing countries strengthen their capacities to respond to emerging conflicts between international trade and global climate regimes while taking advantage of new opportunities. The study also attempts to respond to the need for more sector-specific analysis. Chapter two contributes to the literature by exploring the economic, environmental, and political rationale underlying the potential tension between implementation of the Kyoto Protocol and the existing World Trade Organization (WTO) principles. The chapter further identifies areas where priorities for proactive policy initiatives could minimize potential damage to both trade and global environmental regimes. Chapter three explores and identifies key barriers and opportunities to spur the transfer and diffusion of climate-friendly and clean-energy technologies in developing countries. It further identifies policies and institutional changes that could lead to the removal of barriers and increased market penetration of climate-friendly technology. Chapter four examines and builds on the different approaches that have emerged in the negotiations surrounding trade in environmental goods and services, and it proposes a framework for integrating climate objectives in the discussions. Chapter five presents the conclusions and provides a framework for integrating and streamlining the global environment within the global trading system.

Suggested Citation

  • World Bank, 2007. "International trade and Climate Change : Economic, Legal, and Institutional Perspectives," World Bank Publications, The World Bank, number 6831.
  • Handle: RePEc:wbk:wbpubs:6831
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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/6831/41453optmzd0PA101OFFICIAL0USE0ONLY1.pdf?sequence=1
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    References listed on IDEAS

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    2. ZhongXiang Zhang & Lucas Assunao, 2004. "Domestic Climate Policies and the WTO," The World Economy, Wiley Blackwell, vol. 27(3), pages 359-386, March.
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    5. World Bank, 2007. "Global Economic Prospects 2007 : Managing the Next Wave of Globalization," World Bank Publications, The World Bank, number 7157.
    6. Robert Hamwey, 2005. "Environmental Goods: Where Do the Dynamic Trade Opportunities for Developing Countries Lie?," International Trade 0512015, EconWPA.
    7. Jeffrey A. Frankel, 2003. "The Environment and Globalization," NBER Working Papers 10090, National Bureau of Economic Research, Inc.
    8. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, pages 15-29.
    9. Muthukumara Mani, 1996. "Environmental tariffs on polluting imports," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 391-411.
    10. Fredriksson, Per G. & Vollebergh, Herman R. J. & Dijkgraaf, Elbert, 2004. "Corruption and energy efficiency in OECD countries: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 207-231, March.
    11. Olarreaga, Marcelo, 2000. "Exports and Information Spillovers," CEPR Discussion Papers 2560, C.E.P.R. Discussion Papers.
    12. Joy A. Kim, 2007. "Issues of Dual Use and Reviewing Product Coverage of Environmental Goods," OECD Trade and Environment Working Papers 2007/1, OECD Publishing.
    13. Lecocq, Franck & Shalizi, Zmarak, 2004. "Will the Kyoto Protocol affect growth in Russia?," Policy Research Working Paper Series 3454, The World Bank.
    14. van Beers, Cees & van den Bergh, Jeroen C J M, 1997. "An Empirical Multi-country Analysis of the Impact of Environmental Regulations on Foreign Trade Flows," Kyklos, Wiley Blackwell, vol. 50(1), pages 29-46.
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    Citations

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    Cited by:

    1. Zhang, Zhong Xiang, 2012. "Competitiveness and Leakage Concerns and Border Carbon Adjustments," International Review of Environmental and Resource Economics, now publishers, vol. 6(3), pages 225-287, December.
    2. Alain-Désiré Nimubona, 2010. "Pollution Policy and Liberalization of Trade in Environmental Goods," Working Papers 1004, University of Waterloo, Department of Economics, revised May 2010.
    3. ZhongXiang Zhang, 2011. "Trade in Environmental Goods, with Focus on Climate-Friendly Goods and Technologies," Economics Study Area Working Papers 120, East-West Center, Economics Study Area.
    4. ZhongXiang Zhang, 2009. "Climate Change Meets Trade in Promoting Green Growth: Potential Conflicts and Synergies," Economics Study Area Working Papers 105, East-West Center, Economics Study Area.
    5. Hoekman, Bernard & Martin, Will & Mattoo, Aaditya, 2010. "Conclude Doha: it matters!," World Trade Review, Cambridge University Press, pages 505-530.
    6. Kathryn Harrison, 2015. "International Carbon Trade and Domestic Climate Politics," Global Environmental Politics, MIT Press, pages 27-48.
    7. ZhongXiang Zhang, 2013. "Trade in environmental goods, with focus on climate-friendly goods and technologies," Chapters,in: Research Handbook on Environment, Health and the WTO, chapter 19, pages 673-699 Edward Elgar Publishing.
    8. ZhongXiang Zhang, 2012. "Climate Change Meets Trade in Promoting Green Growth: Potential Conflicts and Synergies," Chapters,in: Responding to Climate Change, chapter 6 Edward Elgar Publishing.
    9. Philippe Quirion, 2010. "Competitiveness and Leakage," Chapters,in: Climate Change Policies, chapter 6 Edward Elgar Publishing.
    10. Solveig Delabroye, 2014. "The Eco-Industry and Trade Agreements," CIRANO Working Papers 2014s-45, CIRANO.
    11. ZhongXiang Zhang, 2013. "Trade in environmental goods, with focus on climate-friendly goods and technologies," Chapters,in: Research Handbook on Environment, Health and the WTO, chapter 19, pages 673-699 Edward Elgar Publishing.
    12. Lee, Minsoo & Villaruel, Mai Lin & Gaspar, Raymond, 2016. "Effects of Temperature Shocks on Economic Growth and Welfare in Asia," ADB Economics Working Paper Series 501, Asian Development Bank.

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