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Essays on globalization - Policies in trade, development, resources and climate change

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  • Kerkelä, Leena

Abstract

This research study on globalization consists of an introduction on the methodology applied, a summary and four independent essays focussing on applied policy research in international trade. The study follows the CGE (Computable General Equilibrium) research tradition. The simulation environment is the publicly available GTAP model. The essays examine the specific topics of trade and aid policies, price liberalization of the Russian energy markets, trade preferences in the sugar sector of the EU and the role of carbon sinks in mitigating climate change. The first essay examines trade and aid policies in Mozambique. The essay analyses the impact of alternative options like trade agreements, aid and trade facilitation. The results suggest that Mozambique has very little to gain from trade agreements or the Doha Round, although some agreements with the EU do yield some benefit. Trade facilitation and aid-for-trade programs on the other hand have the potential for larger benefits. The second essay examines the impact of liberalising Russia's energy sector. The analysis is based on the implicit subsidies in regulated prices of electricity and gas and focuses on the effect of the different taxes and subsidies with respect to welfare and GDP in Russia and abroad. Increases in the price of electricity and gas improve efficiency and shift output from domestic markets to exports. The third essay investigates the impact of liberalising the EU's sugar sector by taking into account the complex structure of the EU sugar market and preferences in imports for developing countries. The fourth essay focuses on the effects of including carbon sinks into the analysis of the impacts of the Kyoto agreement.

Suggested Citation

  • Kerkelä, Leena, 2009. "Essays on globalization - Policies in trade, development, resources and climate change," Research Reports P50, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:p50
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    File URL: https://www.doria.fi/handle/10024/148886
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    References listed on IDEAS

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    2. Böhringer, Christoph, 2001. "Climate politics from Kyoto to Bonn: from little to nothing?!?," ZEW Discussion Papers 01-49, ZEW - Leibniz Centre for European Economic Research.
    3. Michel G.J. den Elzen & Andr� P.G. de Moor, 2002. "Evaluating the Bonn-Marrakesh agreement," Climate Policy, Taylor & Francis Journals, vol. 2(1), pages 111-117, March.
    4. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    5. Alan S. Manne & Richard G. Richels, 1999. "The Kyoto Protocol: A Cost-Effective Strategy for Meeting Environmental Objectives?," The Energy Journal, , vol. 20(1_suppl), pages 1-23, June.
    6. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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