Trade, Technique and Composition Effects: What is Behind the Fall in World-Wide SO2 Emissions 1990-2000?

Jean-Marie Grether, Nicole Mathys and Jaime de Melo

No 7448, Economic Theory and Applications Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: Combining unique data bases on emissions with sectoral output and employment data, we study the sources of the fall in world-wide SO2 emissions and estimate the impact of trade on emissions. Contrarily to concerns raised by environmentalists, an emission-decomposition exercise shows that scale effects are dominated by technique effects working towards a reduction in emissions. A second exercise comparing the actual trade situation with an autarky benchmark estimates that trade, by allowing clean countries to become net importers of emissions, leads to a 10% increase in world emissions with respect to autarky in 1990, a figure that shrinks to 3.5% in 2000. Additionally, back-of-the-envelope calculations suggest that emissions related to transport are of the same magnitude. In a third exercise, we use linear programming to simulate extreme situations where world emissions are either maximal or minimal. It turns out that effective emissions correspond to a 90% reduction with respect to the worst case, but that another 80% reduction could be reached if emissions were minimal. Replaced with revised version of paper 10/18/07.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 41
Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Trade, Technique and Composition Effects: What is Behind the Fall in World-wide SO2 Emissions, 1990-2000? (2007)
Working Paper: Trade, Technique and Composition Effects: What is Behind the Fall in World-Wide SO2 Emissions 1990-2000? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemet:7448

DOI: 10.22004/ag.econ.7448

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