Free Trade and Global Warming: A Trade Theory View of the Kyoto Protocol
This paper demonstrates how three important results in environmental economics, true under mild conditions in closed economies, are false or need serious amendment in a world with international trade in goods. Since the three results we highlight have framed much of the ongoing discussion and research on the Kyoto protocol our viewpoint from trade theory suggests a re-examination may be in order. Specifically, we demonstrate that in an open trading world, but not in a closed economy setting: (1) unilateral emission reductions by the rich North can create self-interested emission reductions by the unconstrained poor South; (2) simple rules for allocating emission reductions across countries (such as uniform reductions) may well be efficient even if international trade in emission permits is not allowed; and (3) when international emission permit trade does occur it may make both participants in the trade worse off and increase global emissions.
|Date of creation:||Apr 2000|
|Date of revision:|
|Publication status:||published as Copeland, Brian R. and M. Scott Taylor. "Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol," Journal of Environmental Economics and Management, 2005, v49(2,Mar), 205-234.|
|Note:||ITI PE EEE|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001.
"Is Free Trade Good for the Environment?,"
American Economic Review,
American Economic Association, vol. 91(4), pages 877-908, September.
- Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
- Gene M. Grossman & Alan B. Krueger, 1994.
"Economic Growth and the Environment,"
NBER Working Papers
4634, National Bureau of Economic Research, Inc.
- David Card & John E. DiNardo, 2000.
"Do Immigrant Inflows Lead to Native Outflows?,"
NBER Working Papers
7578, National Bureau of Economic Research, Inc.
- McKibbin, Warwick J. & Shackleton, Robert & Wilcoxen, Peter J., 1999.
"What to expect from an international system of tradable permits for carbon emissions,"
Resource and Energy Economics,
Elsevier, vol. 21(3-4), pages 319-346, August.
- Warwick J. McKibbin & Robert Shackleton & Peter J. Wilcoxen, 1998. "What to Expect from an International System of Tradable Permits for Carbon Emmisions," Economics and Environment Network Working Papers 9804, Australian National University, Economics and Environment Network.
- Hoel, M., 1990.
"Efficient International Agreements For Reducing Emissions Of Co2,"
06/1990, Oslo University, Department of Economics.
- Michael Hoel, 1991. "Efficient International Agreements for Reducing Emissions of CO2," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 93-108.
- Hoel, M., 1989.
"Global Environmental Problems: The Effects Of Unilateral Actions Taken By One Country,"
11/1989, Oslo University, Department of Economics.
- Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
- Grossman, Gene M., 1984. "The gains from international factor movements," Journal of International Economics, Elsevier, vol. 17(1-2), pages 73-83, August.
- Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
- Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-37, September.
- David Card, 1989.
"The Impact of the Mariel Boatlift on the Miami Labor Market,"
NBER Working Papers
3069, National Bureau of Economic Research, Inc.
- David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
- Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
- Jorgenson, Dale W. & Wilcoxen, Peter J., 1993. "Reducing US carbon emissions: an econometric general equilibrium assessment," Resource and Energy Economics, Elsevier, vol. 15(1), pages 7-25, March.
- Welsch, Heinz, 1995. "Incentives for forty-five countries to join various forms of carbon reduction agreements," Resource and Energy Economics, Elsevier, vol. 17(3), pages 213-237, November.
- Chander, Parkash & Tulkens, Henry, 1992.
"Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems,"
European Economic Review,
Elsevier, vol. 36(2-3), pages 388-399, April.
- CHANDER, Parkash & TULKENS, Henry, . "Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems," CORE Discussion Papers RP 983, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
- Markusen, James R. & Melvin, James R., 1979. "Tariffs, capital mobility, and foreign ownership," Journal of International Economics, Elsevier, vol. 9(3), pages 395-409, August.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:7657. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.