Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282683 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16556
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We use Danish firm-level data to examine the causal link between carbon emissions, offshoring, and import competition. Offshoring reduces firms' emission intensity but increases their production. Import competition reduces firms' production without affecting their emission intensity. For Denmark, these effects imply that observed offshoring trends reduced the overall manufacturing emission intensity while import competition did not. However, despite the emission reducing effects in local manufacturing, offshoring did not affect global emissions. Furthermore, import competition substantially increased global emissions. Therefore, based on offshoring and Chinese import competition, our results suggest that international trade may be bad for the global environment.
Subjects: 
carbon emissions
offshoring
import competition
JEL: 
F14
F18
Q54
Q56
Document Type: 
Working Paper

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