Trade Costs, CO2, and the Environment
Year: 2013
Type: article
Abstract: This paper quantifies how international trade affects CO2 emissions and analyzes the welfare consequences of regulating the CO2 emissions from shipping. To this end, the paper describes a model of trade and the environment, compiles new data on the CO2 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 CO2 emissions by two orders of magnitude. While proposed regional carbon taxes on the CO2 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)
DOI: 10.1257/pol.20150168
Author: Joseph S. Shapiro
Institution: Yale University
Language: English
Subfield: Environmental Engineering
Field: Environmental Science
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W2548044168