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ResearchPaper
2010

Kyoto and the carbon content of trade

Abstract (English)

A unilateral tax on CO2 emissions may drive up indirect carbon imports from non-committed countries, leading to carbon leakage. Using a gravity model of carbon trade, we analyze the effect of the Kyoto Protocol on the carbon content of bilateral trade. We construct a novel data set of CO2 emissions embodied in bilateral trade flows. Its panel structure allows dealing with endogenous selection of countries into the Protocol. We find strong statistical evidence for Kyoto commitments to affect carbon trade. On average, the Kyoto protocol led to substantial carbon leakage but its total effect on carbon trade was only minor.

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Notes

Publication license

Publication series

FZID discussion papers; 10

Published in

Faculty
Faculty of Business, Economics and Social Sciences
State Institutes
Institute
Institut für Volkswirtschaftslehre (bis 2010)
Forschungszentrum Innovation und Dienstleistung

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Sustainable Development Goals

BibTeX

@techreport{Felbermayr2010, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5304}, author = {Felbermayr, Gabriel and Aichele, Rachel}, title = {Kyoto and the carbon content of trade}, year = {2010}, school = {Universität Hohenheim}, series = {FZID discussion papers}, }
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