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Estimating the effects of Kyoto on bilateral trade flows using matching econometrics

Rahel Aichele, Gabriel Felbermayr and Gabriel J. Felbermayr
Authors registered in the RePEc Author Service: Gabriel J Felbermayr

No 119, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: Many Kyoto countries fear a loss of competitiveness due to unilateral climate policy efforts; policymakers therefore call for carbon-related border tax adjustments. With this paper we attempt to estimate the treatment effect of Kyoto commitment on bilateral export flows using regression-adjusted differences-in-differences matching techniques. The gravity and international environmental agreement formation literatures provide guidelines for the choice of matching variables. We find that Kyoto countries' exports are reduced by 13–14% due to Kyoto commitment. Trade effects are largest in energyintensive, homogeneous industries such as iron and steel, non-ferrous metals, organic and inorganic chemicals but also in machinery and equipment.

JEL-codes: F18 Q54 Q56 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://www.ifo.de/DocDL/IfoWorkingPaper-119.pdf (application/pdf)

Related works:
Journal Article: Estimating the Effects of Kyoto on Bilateral Trade Flows Using Matching Econometrics (2013) Downloads
Working Paper: Estimating the Effects of Kyoto on Bilateral Trade Flows Using Matching Econometrics (2013)
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