CO2 Emissions Embodied in International Trade â€” A Comparison on BRIC Countries
International trade has strong impacts on climate change. Trade can act as a strong factor for some countries to transfer their own Green House Gas (GHG) emissions to their trade partners. In the last decade, BRIC countries (Brazil, Russia, India and China) have witnessed the highest economic growth rates as well as the fastest expansion in trade. Within the same time span they also emerged as the worldâ€™s largest GHG emitting countries. Now, the question arises, is this increase in pollution in BRIC countries due to international trade? Are these countries becoming so called global â€œpollution havensâ€? In this article, I use the single region input-output analysis model to assess the CO2 emissions embodied in trade in BRIC countries, and also identify if there are carbon leakages in these countries. The result shows that due to its massive export of manufacturing products, China has emitted a huge amount of CO2. Russia also has a big imbalance on trade embodied CO2 emission mainly due to its massive export of energy products. However, the paper finds that the increase in Brazilâ€™s CO2 emissions is not related to trade but to land-use and agriculture and India actually benefits from the trade flow, environmentally.
|Date of creation:||May 2012|
|Date of revision:|
|Publication status:||Published in Berlin Working Papers on Money, Finance, Trade and Development, May 2012|
|Contact details of provider:|| Web page: http://finance-and-trade.htw-berlin.de |
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- Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
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- Erik Dietzenbacher & Kakali Mukhopadhyay, 2007. "An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(4), pages 427-449, April.
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