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Climate change and balance of trade

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  • Hochman, Gal
  • Zilberman, David

Abstract

In the absence of a global climate agreement, countries employ local policies to curb pollution and introduce clean energy. These policies limit domestic consumption of a traded energy source but increase exports thus improving a country’s energy balance and its balance of trade. While focusing on US energy policy, we show this phenomenon for both petroleum products and for coal.

Suggested Citation

  • Hochman, Gal & Zilberman, David, 2014. "Climate change and balance of trade," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt87d2b3kx, Department of Agricultural & Resource Economics, UC Berkeley.
  • Handle: RePEc:cdl:agrebk:qt87d2b3kx
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    File URL: https://www.escholarship.org/uc/item/87d2b3kx.pdf;origin=repeccitec
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    References listed on IDEAS

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    1. David Zilberman & Geoff Barrows & Gal Hochman & Deepak Rajagopal, 2013. "On the Indirect Effect of Biofuel," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1332-1337.
    2. Rajagopal, D. & Hochman, G. & Zilberman, D., 2011. "Indirect fuel use change (IFUC) and the lifecycle environmental impact of biofuel policies," Energy Policy, Elsevier, vol. 39(1), pages 228-233, January.
    3. Ujjayant Chakravorty & Marie-Hélène Hubert & Linda Nøstbakken, 2009. "Fuel Versus Food," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 645-663, September.
      • Ujjayant Chakravorty & Marie-Hélène Hubert & Linda Nøstbakken, 2009. "Fuel Versus Food," Post-Print halshs-01117673, HAL.
      • Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2009. "Fuel versus Food," Working Papers 2009-20, University of Alberta, Department of Economics.
    4. Barrow, Geoffrey & Hochman, Gal & Zilberman, David, 2012. "Petroleum refining and the indirect byproduct effect of biofuels," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124698, Agricultural and Applied Economics Association.
    5. Madhu Khanna & Christine L. Crago, 2012. "Measuring Indirect Land Use Change with Biofuels: Implications for Policy," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 161-184, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Social and Behavioral Sciences; energy sources; international trade; technological change; climate change; balance of trade; green paradox;

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