Environmental Costs of European Union Membership: A Structural Decomposition Analysis
Inácio Araúgo (),
Amir Borges Ferreira Neto and
Fernando Perobelli ()
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Inácio Araúgo: Universidade Federal de Juiz de Fora
No Working Paper 2018-04, Working Papers from Regional Research Institute, West Virginia University
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: P28 R15 Q56 F64 (search for similar items in EconPapers)
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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