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Environmental Costs of European Union Membership: A Structural Decomposition Analysis

Author

Listed:
  • Inácio Araúgo

    (Universidade Federal de Juiz de Fora)

  • Randall Jackson

    (Regional Research Institute, West Virginia University)

  • Amir B. Ferreira Neto

    (Regional Research Institute, West Virginia University)

  • Fernando Perobelli

    (Universidade Federal de Juiz de Fora)

Abstract

The interest in this paper lies in the environmental costs of the European Union (EU). EU membership requires a series of economic and political changes that should impact the country’s production and consumption structures and its trade relationships. These, in turn, will affect CO2 emissions sources and levels. This is especially true for the former Soviet Union countries that recently joined the EU, given the difference in their levels of development and production structure.Using a structural decomposition analysis we are able to quantify the main drivers of changes in emissions differentiating six components, namely: emissions intensity, industrial structure and sourcing,consumer preferences, final demand sourcing and consumption level. Grouping the countries into five clubs, New European Union countries, Old European Union countries, the United States of America, China, and the Rest of the World, we measure trading pattern changes and their impact on CO2 emission levels.

Suggested Citation

  • Inácio Araúgo & Randall Jackson & Amir B. Ferreira Neto & Fernando Perobelli, 2018. "Environmental Costs of European Union Membership: A Structural Decomposition Analysis," Working Papers Working Paper 2018-04, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2018wp04
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    File URL: https://researchrepository.wvu.edu/rri_pubs/38/
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    More about this item

    Keywords

    CO2; Emissions; European Union; Input-Output Analysis; Structural Decomposition Analysis;
    All these keywords.

    JEL classification:

    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment

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