Environmental Costs of European Union Membership: A Structural Decomposition Analysis

Inácio Araúgo (), Randall Jackson (), Amir Borges Ferreira Neto and Fernando Perobelli
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Inácio Araúgo: Universidade Federal de Juiz de Fora
Authors registered in the RePEc Author Service: Inácio Fernandes de Araújo

Working Papers from Regional Research Institute, West Virginia University

Abstract: The interest in this paper lies in the environmental costs of the European Union (EU). EU membership requires a series of economic and political changes that should impact the country’s production and consumption structures and its trade relationships. These, in turn, will affect CO2 emissions sources and levels. This is especially true for the former Soviet Union countries that recently joined the EU, given the difference in their levels of development and production structure.Using a structural decomposition analysis we are able to quantify the main drivers of changes in emissions differentiating six components, namely: emissions intensity, industrial structure and sourcing,consumer preferences, final demand sourcing and consumption level. Grouping the countries into five clubs, New European Union countries, Old European Union countries, the United States of America, China, and the Rest of the World, we measure trading pattern changes and their impact on CO2 emission levels.

Keywords: CO2; Emissions; European Union; Input-Output Analysis; Structural Decomposition Analysis (search for similar items in EconPapers)
JEL-codes: F64 P28 Q56 R15 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2018-03-19
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
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Persistent link: https://EconPapers.repec.org/RePEc:rri:wpaper:2018wp04

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