Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade
Rahel Aichele and
Gabriel Felbermayr
The Review of Economics and Statistics, 2015, vol. 97, issue 1, 104-115
Abstract:
Has the Kyoto Protocol induced carbon leakage? We conduct the first empirical ex post evaluation of the protocol. We derive a theoretical gravity equation for the carbon dioxide content of trade, which accounts for intermediate inputs, both domestic and imported. The structure of our new panel database of the carbon content of sectoral bilateral trade flows allows controlling for the endogenous selection of countries into the Kyoto Protocol. Binding commitments under Kyoto have increased committed countries' embodied carbon imports from noncommitted countries by around 8% and the emission intensity of their imports by about 3%. Hence, Kyoto has indeed led to leakage. © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technology
Keywords: Kyoto Protocol; carbon leakage; carbon dioxide; trade; domestic trade; imported trade; carbon content; sectoral bilateral trade; carbon imports (search for similar items in EconPapers)
JEL-codes: F18 Q53 Q56 R40 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (221)
Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00438 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade (2011) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:97:y:2015:i:1:p:104-115
Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535
Access Statistics for this article
The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu
More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().