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Reconciling Trade and Climate Policies

  • Nicole A. MATHYS

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

  • Jaime de MELO

    ()

    (Ferdi)

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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Web page: http://ferdi.fr/

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  1. Jean-Marie GRETHER & Nicole A. MATHYS & Jaime DE MELO, 2006. "Unraveling the World-Wide Pollution Haven Effect," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 06.04, Université de Lausanne, Faculté des HEC, DEEP.
  2. Reyer Gerlagh & Onno Kuik, 2007. "Carbon Leakage with International Technology Spillovers," Working Papers 2007.33, Fondazione Eni Enrico Mattei.
  3. 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.
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  6. Ostrom, Elinor, 2009. "A polycentric approach for coping with climate change," Policy Research Working Paper Series 5095, The World Bank.
  7. 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.
  8. Corrado Di Maria & Edwin van der Werf, 2006. "Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change," Working Papers 2006.94, Fondazione Eni Enrico Mattei.
  9. John WHALLEY, 2011. "What Role for Trade in a Post 2012 Global Climate Policy Regime," Working Papers P22, FERDI.
  10. Jean-Marie GRETHER & Nicole A. MATHYS, 2010. "Measuring the pollution terms of trade with technique effects," Working Papers I05, FERDI.
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  12. 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.
  13. Yan Dong & John Whalley, 2008. "Carbon, Trade Policy, and Carbon Free Trade Areas," NBER Working Papers 14431, National Bureau of Economic Research, Inc.
  14. Aichele, Rahel & Felbermayr, Gabriel, 2012. "Kyoto and the carbon footprint of nations," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 336-354.
  15. 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).
  16. Moore, Michael O., 2010. "Implementing carbon tariffs : a fool's errand ?," Policy Research Working Paper Series 5359, The World Bank.
  17. de Melo, Jaime & Mathys, Nicole Andréa, 2010. "Trade and Climate Change: The Challenges Ahead," CEPR Discussion Papers 8032, C.E.P.R. Discussion Papers.
  18. 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.
  19. Nancy Birdsall & Arvind Subramanian, 2009. "Energy Needs and Efficiency, Not Emissions: Re-framing the Climate Change Narrative," Working Papers 187, Center for Global Development.
  20. Messerlin, Patrick A., 2010. "Climate change and trade policy : from mutual destruction to mutual support," Policy Research Working Paper Series 5378, The World Bank.
  21. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
  22. 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.
  23. Khanna, Madhu & Zilberman, David, 2001. "Adoption of energy efficient technologies and carbon abatement: the electricity generating sector in India," Energy Economics, Elsevier, vol. 23(6), pages 637-658, November.
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