Trade, Transportation and the Environment

Rikard Forslid

No 14228, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper analyzes the environmental impact of emissions related to trade and trans- portation. It is shown that transportation may in principle lower global emissions if the production sector is dirtier than the transport sector. The measure of a sector's dirtiness is related to the emissions taxes and the abatement efficiency within that sector. It is shown that a firm's abatement efficiency can be calculated from the emission-to-cost ratio times the emissions tax. Using Swedish data to rank 5-digit industries in terms of their dirtiness reveals that several production sectors have a higher dirtiness index than transportation does.

Keywords: Emissions; Trade; Transportation (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-int and nep-tre
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Working Paper: Trade, Transportation and the Environment (2020)
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