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Trade, Transportation and the Environment

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  • Forslid, Rikard

    (Dept. of Economics, Stockholm University)

Abstract

This paper analyzes the environmental impact of emissions related to trade and transportation. It is shown that transportation may in principle lower global emissions if the production sector is dirtier than the transport sector. The measure of a sector´s dirtiness is related to the emissions taxes and the abatement efficiency within that sector. It is shown that a firm´s abatement efficiency can be calculated from the emissions-to-cost ratio times the emissions tax. Using Swedish data to rank 5-digit industries in terms of their dirtiness reveals that several production sectors have a higher dirtiness index than transportation does.

Suggested Citation

  • Forslid, Rikard, 2020. "Trade, Transportation and the Environment," Research Papers in Economics 2020:2, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2020_0002
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    References listed on IDEAS

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    More about this item

    Keywords

    Emissions; Trade; Transportation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F18 - International Economics - - Trade - - - Trade and Environment

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