Is bioenergy trade good for the environment?

Jean-Marc Bourgeon and Hélène Ollivier

European Economic Review, 2012, vol. 56, issue 3, 411-421

Abstract: We analyze the impacts of bioenergy trade on greenhouse gas emissions using a two-good, three-factor model. Bioenergy is an agricultural good used as a substitute for fossil fuels in industry. Governments tax domestic pollution without international coordination. We assume that northern countries have higher labor productivity than southern ones and that agriculture is less pollution intensive than industry (after taxation). We show that whereas southern countries impose a lower tax rate than northern ones, they do not necessary have a competitive advantage in industry, and that compared to autarky, trade liberalization either increases or decreases worldwide emissions depending on regional comparative advantages.

Keywords: Bioenergy; Intermediate product; North–South trade; Global pollution (search for similar items in EconPapers)
JEL-codes: F18 H23 Q17 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:3:p:411-421

DOI: 10.1016/j.euroecorev.2011.11.002

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