IDEAS home Printed from https://ideas.repec.org/p/esr/wpaper/wp420.html

Trade, Energy, and Carbon Dioxide: An Analysis for the Two Economies of Ireland

Author

Listed:
  • Hyland, Marie
  • Jennings, Anne
  • Tol, Richard S. J.

Abstract

In this paper we use a subsystem input-output decomposition analysis to examine the drivers of greenhouse gas emissions in the Republic of Ireland and in Northern Ireland. We use a bi-regional input-output analysis to look at how greenhouse gases in one region can be emitted as a result of demand in an exporting region. Looking at emissions generated throughout the island of Ireland, we find that emissions driven by demand in Northern Ireland are larger than those it generates, and vice-versa for the Republic of Ireland. We then use the input-output tables to simulate the effect of imposing a ?15/tonne carbon tax in the Republic of Ireland. We find that this causes a decrease in final demand in the Republic of Ireland, and a decrease in output in both the Republic of Ireland and in Northern Ireland; the decrease is greater in the Republic as the domestically produced share of inputs is much larger than the imported share in all sectors.

Suggested Citation

  • Hyland, Marie & Jennings, Anne & Tol, Richard S. J., 2012. "Trade, Energy, and Carbon Dioxide: An Analysis for the Two Economies of Ireland," Papers WP420, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp420
    as

    Download full text from publisher

    File URL: https://www.esri.ie/pubs/WP420.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lyons, Sean & Mayor, Karen & Tol, Richard S.J., 2009. "Convergence of consumption patterns during macroeconomic transition: A model of demand in Ireland and the OECD," Economic Modelling, Elsevier, vol. 26(3), pages 702-714, May.
    2. Maria Llop & Richard S.J. Tol, 2013. "Decomposition of sectoral greenhouse gas emissions: a subsystem input-output model for the Republic of Ireland," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(9), pages 1316-1331, November.
    3. John M. Hartwick, 1970. "Notes on the Isard and Chenery-Moses Interregional Input-Output Models," Working Paper 16, Economics Department, Queen's University.
    4. Joe O'Doherty & Richard Tol, 2007. "An Environmental Input-Output Model for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 38(2), pages 157-190.
    5. Xavier Labandeira & José M. Labeaga, 1999. "Combining input-output analysis and micro-simulation to assess the effects of carbon taxation on Spanish households," Fiscal Studies, Institute for Fiscal Studies, vol. 20(3), pages 305-320, September.
    6. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Callan, Tim & Lyons, Sean & Scott, Susan & Tol, Richard S.J. & Verde, Stefano, 2009. "The distributional implications of a carbon tax in Ireland," Energy Policy, Elsevier, vol. 37(2), pages 407-412, February.
    2. Boglioni, Michele & Zambelli, Stefano, 2018. "Specialization patterns and reduction of CO2 emissions. An empirical investigation of environmental preservation and economic efficiency," Energy Economics, Elsevier, vol. 75(C), pages 134-149.
    3. Jing-Li Fan & Jian-Da Wang & Ling-Si Kong & Xian Zhang, 2018. "The carbon footprints of secondary industry in China: an input–output subsystem analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 91(2), pages 635-657, March.
    4. Mònica Serrano, 2007. "The Production and Consumption Accounting Principles as a Guideline for Designing Environmental Tax Policy," Working Papers 2007.8, Fondazione Eni Enrico Mattei.
    5. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    6. Cristian Mardones P. & Tamara Muñoz Z., 2017. "Impuesto al CO2 en el sector eléctrico chileno: efectividad y efectos macroeconómicos," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 20(1), pages 004-025, April.
    7. Abdeslam Boudhar & Said Boudhar & Aomar Ibourk, 2017. "An input–output framework for analysing relationships between economic sectors and water use and intersectoral water relationships in Morocco," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-25, December.
    8. Maria Llop & Richard S.J. Tol, 2013. "Decomposition of sectoral greenhouse gas emissions: a subsystem input-output model for the Republic of Ireland," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(9), pages 1316-1331, November.
    9. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2011. "The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 97-117.
    10. Corbett A. Grainger & Charles D. Kolstad, 2010. "Distribution and Climate Change Policies," Chapters, in: Emilio Cerdá Tena & Xavier Labandeira (ed.), Climate Change Policies, chapter 7, Edward Elgar Publishing.
    11. Taelim Choi & Randall W. Jackson & Nancey Green Leigh & Christa D. Jensen, 2011. "A Baseline Input—Output Model with Environmental Accounts (IOEA) Applied to E-Waste Recycling," International Regional Science Review, , vol. 34(1), pages 3-33, January.
    12. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    13. Albert, Osei-Owusu Kwame & Marianne, Thomsen & Jonathan, Lindahl & Nino, Javakhishvili Larsen & Dario, Caro, 2020. "Tracking the carbon emissions of Denmark's five regions from a producer and consumer perspective," Ecological Economics, Elsevier, vol. 177(C).
    14. Li, Yilin & Chen, Bin & Li, Chaohui & Li, Zhi & Chen, Guoqian, 2020. "Energy perspective of Sino-US trade imbalance in global supply chains," Energy Economics, Elsevier, vol. 92(C).
    15. Zhu, Bangzhu & Su, Bin & Li, Yingzhu & Ng, Tsan Sheng, 2020. "Embodied energy and intensity in China’s (normal and processing) exports and their driving forces, 2005-2015," Energy Economics, Elsevier, vol. 91(C).
    16. Claudia Kettner-Marx & Daniela Kletzan-Slamanig, 2018. "Carbon Taxes from an Economic Perspective," WIFO Working Papers 554, WIFO.
    17. Airebule, Palizha & Cheng, Haitao & Ishikawa, Jota, 2023. "Assessing carbon emissions embodied in international trade based on shared responsibility," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    18. John Curtis & Brian Stanley, 2016. "Analysing Residential Energy Demand: An Error Correction Demand System Approach for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 47(2), pages 185-211.
    19. Alexandros Gkatsikos & Konstadinos Mattas, 2021. "The Paradox of the Virtual Water Trade Balance in the Mediterranean Region," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    20. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Residential Energy Demand System for Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 87-112.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:wp420. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Burns (email available below). General contact details of provider: https://edirc.repec.org/data/esriiie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.