Trade Costs, CO2, and the Environment | Zendy

Joseph Shapiro | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Trade Costs, CO₂, and the Environment

Author(s) -

Joseph Shapiro

Publication year - 2016

Publication title -

american economic journal economic policy

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 7.868

H-Index - 62

eISSN - 1945-7731

pISSN - 1945-774X

DOI - 10.1257/pol.20150168

Subject(s) - harm , welfare , greenhouse gas , economics , international trade , international economics , natural resource economics , environmental science , ecology , political science , law , market economy , biology

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)

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research