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Kyoto and the Carbon Footprint of Nations

Rahel Aichele and Gabriel Felbermayr ()

No 103, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: A country’s carbon footprint refers to the CO2 emissions caused by domestic absorption activities. Trade in goods drives a wedge between the footprint and local emissions. We provide a panel database on carbon footprints and carbon net trade. Using a differencesin- differences IV estimation strategy, we evaluate the Kyoto Protocol’s effects on carbon footprints and emissions. Instrumenting countries’ Kyoto commitment by their participation in the International Criminal Court, we show that Kyoto reduced domestic emissions in committed countries by 7%, has not lowered footprints, but increased the share of imported over domestic emissions by 17 percentage points. This indicates carbon leakage.

Keywords: Carbon content of trade; carbon footprint; carbon leakage; evaluation model; instrumental variables (search for similar items in EconPapers)
JEL-codes: F18 F53 Q54 Q58 (search for similar items in EconPapers)
Date: 2011
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