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Reconciling Trade and Climate Policies

  • Nicole A. MATHYS

    (Office fédéral suisse de l'énergie (OFEN))

  • Jaime de MELO



The outcome of the 15th conference of the Parties to the UNFCCC in Copenhagen showed a shift from a top-down approach with a collective target favoring environmental objectives to a bottom-up accord favoring political feasibility. There is no meaningful binding agreement in sight, also because the global climate regime and the global trade policy regime appear to be on a collision course. Following a review of the challenges ahead, the paper argues that trade will have a second-order contribution to world-wide CO2 emissions. Evidence shows increasing carbon transfers through trade, but the magnitude of carbon leakage effects may be less than feared in some circles.

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Paper provided by FERDI in its series Working Papers with number P37.

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Date of creation: Feb 2012
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Handle: RePEc:fdi:wpaper:502
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  1. Jean-Marie GRETHER & Nicole A. MATHYS & Jaime de MELO, 2012. "Unravelling the Worldwide Pollution Haven Effect," Working Papers P40, FERDI.
  2. Gaëlle BALINEAU & Jaime de MELO, 2011. "Stalemate at the Negotiations on Environmental Goods and Services at the Doha Round," Working Papers P28, FERDI.
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  4. Messerlin, Patrick A., 2010. "Climate change and trade policy : from mutual destruction to mutual support," Policy Research Working Paper Series 5378, The World Bank.
  5. Carlos Ordás Criado & Jean-Marie Grether, 2010. "Convergence in per capita CO2 emissions: a robust distributional approach," CEPE Working paper series 10-70, CEPE Center for Energy Policy and Economics, ETH Zurich.
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  7. Yan Dong & John Whalley, 2008. "Carbon, Trade Policy, and Carbon Free Trade Areas," NBER Working Papers 14431, National Bureau of Economic Research, Inc.
  8. Gallagher, Kelly Sims, 2006. "Limits to leapfrogging in energy technologies? Evidence from the Chinese automobile industry," Energy Policy, Elsevier, vol. 34(4), pages 383-394, March.
  9. Brian R. Copeland & M. Scott Taylor, 2003. "Trade, Growth and the Environment," NBER Working Papers 9823, National Bureau of Economic Research, Inc.
  10. Di Maria, C. & van der Werf, E.H., 2005. "Carbon Leakage Revisited : Unilateral Climate Policy with Directed Technical Change," Discussion Paper 2005-68, Tilburg University, Center for Economic Research.
  11. Rahel Aichele & Gabriel Felbermayr, 2011. "Kyoto and the Carbon Footprint of Nations," Ifo Working Paper Series Ifo Working Paper No. 103, Ifo Institute for Economic Research at the University of Munich.
  12. John WHALLEY, 2011. "What Role for Trade in a Post 2012 Global Climate Policy Regime," Working Papers P22, FERDI.
  13. Susanne Droege, 2011. "Using border measures to address carbon flows," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1191-1201, September.
  14. Ostrom, Elinor, 2009. "A polycentric approach for coping with climate change," Policy Research Working Paper Series 5095, The World Bank.
  15. Reyer Gerlagh & Onno Kuik, 2007. "Carbon Leakage with International Technology Spillovers," Working Papers 2007.33, Fondazione Eni Enrico Mattei.
  16. Jean-Marie GRETHER & Nicole A. MATHYS, 2010. "Measuring the pollution terms of trade with technique effects," Working Papers I05, FERDI.
  17. Lovely, Mary & Popp, David, 2011. "Trade, technology, and the environment: Does access to technology promote environmental regulation?," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 16-35, January.
  18. Kellenberg, Derek K., 2008. "A reexamination of the role of income for the trade and environment debate," Ecological Economics, Elsevier, vol. 68(1-2), pages 106-115, December.
  19. David Wheeler and Saurabh Shome, 2010. "Less Smoke, More Mirrors: Where India Really Stands on Solar Power and Other Renewables," Working Papers 204, Center for Global Development.
  20. Nancy Birdsall & Arvind Subramanian, 2009. "Energy Needs and Efficiency, Not Emissions: Re-framing the Climate Change Narrative," Working Papers 187, Center for Global Development.
  21. Nicole A. MATHYS & Jaime de MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.
  22. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
  23. Lin, Boqiang & Li, Xuehui, 2011. "The effect of carbon tax on per capita CO2 emissions," Energy Policy, Elsevier, vol. 39(9), pages 5137-5146, September.
  24. Henrik HORN & Petros C. MAVROIDIS, 2011. "To B(TA) or not to B(TA)? On the Legality and Desirability of Border Tax Adjustments from a Trade Perspective," Working Papers P21, FERDI.
  25. Aichele, Rahel & Felbermayr, Gabriel, 2010. "Kyoto and the carbon content of trade," FZID Discussion Papers 10-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
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