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Tracing Brazilian states’ CO2 emissions in domestic and global trade

Author

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  • Denise Imori

    ()

  • Joaquim Jose Martins Guilhoto

    ()

Abstract

The current Brazilian position on climate change has been formalized with the law of National Climate Change Policy, which provides a legal framework for national actions aimed at mitigation and adaptation. Within PNMC, the country has defined its national voluntary reduction targets for greenhouse gases emissions, with reductions between 36.1% and 38.9% of projected emissions by 2020. The distribution of the corresponding mitigation efforts by regions is of great concern in a large country like Brazil. In fact, most of Brazilian states have established public policies on climate change. In this context, questions raised in the literature on global climate change, such as the environmental responsibility for emissions embodied in trade, also apply at the regional level, and perhaps even to a larger extent. In order to analyze at regional level the current relationship between Brazil’s CO2 emissions and domestic and global value chains, in this study we adopt a new framework that combines a world input-output table with an inter-regional input-output table. Also, a new database is compiled on Brazilian states’ energy use (by fuel) and related CO2 emissions at sectoral level, based on states’ official energy balances. We are able to evaluate the CO2 emissions in each of the 27 Brazilian states, considering their respective productive structure, energy use, as well as their trade with other states or foreign countries. We find that, in 2008, emissions from the production of inter-regionally traded goods and services corresponded to 36% of Brazilian CO2 emissions. There is great variation among states concerning their emissions intensities and carbon content of their trade relationships with their states and foreign countries.

Suggested Citation

  • Denise Imori & Joaquim Jose Martins Guilhoto, 2015. "Tracing Brazilian states’ CO2 emissions in domestic and global trade," Working Papers, Department of Economics 2015_33, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2015wpecon33
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    References listed on IDEAS

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    1. Cadarso, María-Ángeles & López, Luis-Antonio & Gómez, Nuria & Tobarra, María-Ángeles, 2012. "International trade and shared environmental responsibility by sector. An application to the Spanish economy," Ecological Economics, Elsevier, vol. 83(C), pages 221-235.
    2. Serrano, Mònica & Dietzenbacher, Erik, 2010. "Responsibility and trade emission balances: An evaluation of approaches," Ecological Economics, Elsevier, vol. 69(11), pages 2224-2232, September.
    3. Emerson Martins Hilgemberg & Joaquim J. M. Guilhoto & Cleise M. A. T. Hilgemberg, 2005. "Uso De Combustíveis E Emissões De Co2 No Brasil: Um Modelo Inter-Regional De Insumo-Produto," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 135, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Kirsten S. Wiebe & Martin Bruckner & Stefan Giljum & Christian Lutz, 2012. "Calculating Energy-Related Co 2 Emissions Embodied In International Trade Using A Global Input--Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 24(2), pages 113-139, November.
    5. Douglas, Stratford & Nishioka, Shuichiro, 2012. "International differences in emissions intensity and emissions content of global trade," Journal of Development Economics, Elsevier, vol. 99(2), pages 415-427.
    6. Meng, Bo & Wang, Zhi & Koopman, Robert, 2013. "How are global value chains fragmented and extended in China's domestic production networks?," IDE Discussion Papers 424, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Pei, Jiansuo & Meng, Bo & Wang, Fei & Xue, Jinjun, 2015. "Production sharing, demand spillovers and CO2 emissions : the case of Chinese regions in GVCs," IDE Discussion Papers 493, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    More about this item

    Keywords

    CO2 emissions; input-output analysis; global value chains;

    JEL classification:

    • 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
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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