Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30018
Authors: 
Aichele, Rahel
Felbermayr, Gabriel
Year of Publication: 
2010
Series/Report no.: 
FZID discussion papers 10-2010
Abstract: 
A unilateral tax on CO2 emissions may drive up indirect carbon imports from non-committed countries, leading to carbon leakage. Using a gravity model of carbon trade, we analyze the effect of the Kyoto Protocol on the carbon content of bilateral trade. We construct a novel data set of CO2 emissions embodied in bilateral trade flows. Its panel structure allows dealing with endogenous selection of countries into the Protocol. We find strong statistical evidence for Kyoto commitments to affect carbon trade. On average, the Kyoto protocol led to substantial carbon leakage but its total effect on carbon trade was only minor.
Subjects: 
Carbon leakage
gravity model
international trade
climate change
embodied emission
input-output analysis
JEL: 
F18
Q54
Q56
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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