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/lp/american-economic-association/trade-costs-co-2-and-the-environment-0NZF83WFwv
- Publisher
- American Economic Association
- Copyright
- Copyright © 2016 by the American Economic Association
- Subject
- Articles
- ISSN
- 1945-7731
- eISSN
- 1945-774X
- DOI
- 10.1257/pol.20150168
- Publisher site
- See Article on Publisher Site
Abstract
Abstract This paper quantifies how international trade affects CO 2 emissions and analyzes the welfare consequences of regulating the CO 2 emissions from shipping. To this end, the paper describes a model of trade and the environment, compiles new data on the CO 2 emissions from shipping, and estimates key parameters using panel data regressions. Results show that the benefits of international trade exceed trade's environmental costs due to CO 2 emissions by two orders of magnitude. While proposed regional carbon taxes on the CO 2 emissions from shipping would increase global welfare and increase the implementing region's GDP, they would also harm poor countries. (JEL F18, H23, H87, L92, Q54, Q56 )
Journal
American Economic Journal: Economic Policy – American Economic Association
Published: Nov 1, 2016