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Kyoto and the Carbon Footprint of Nations

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  • Rahel Aichele

    ()

  • Gabriel Felbermayr

    ()

Abstract

A country’s carbon footprint refers to the CO2 emissions caused by domestic absorption activities. Trade in goods drives a wedge between the footprint and local emissions. We provide a panel database on carbon footprints and carbon net trade. Using a differencesin- differences IV estimation strategy, we evaluate the Kyoto Protocol’s effects on carbon footprints and emissions. Instrumenting countries’ Kyoto commitment by their participation in the International Criminal Court, we show that Kyoto reduced domestic emissions in committed countries by 7%, has not lowered footprints, but increased the share of imported over domestic emissions by 17 percentage points. This indicates carbon leakage.

Suggested Citation

  • Rahel Aichele & Gabriel Felbermayr, 2011. "Kyoto and the Carbon Footprint of Nations," ifo Working Paper Series 103, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_103
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    References listed on IDEAS

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    More about this item

    Keywords

    Carbon content of trade; carbon footprint; carbon leakage; evaluation model; instrumental variables;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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