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Trade and Climate Policies: Do Emissions from International Transport Matter?
Author(s) -
Vöhringer Frank,
Grether JeanMarie,
Mathys Nicole A.
Publication year - 2013
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12052
Subject(s) - computable general equilibrium , carbon leakage , economics , greenhouse gas , international economics , liberalization , international trade , climate change , natural resource economics , emissions trading , macroeconomics , market economy , ecology , biology
This paper provides orders of magnitude of the importance of CO 2 emissions from international freight transport activities under a variety of scenarios regarding trade and climate policies. It is based on a stylised multiregion, multisector CGE model that includes the four modes of international transport (air, water, road and rail) and where choices regarding the energy mix and transport modes have been endogeneised. A separate decomposition of emission changes into the well‐known scale, composition and technique effects is provided. Scale effects turn out to be roughly double in international transport than in exports, while technique effects are weaker due to less substitutability between energy inputs. As a result, international transport represents half of the world increase in global emissions when trade liberalisation is considered in isolation. When trade liberalisation is coupled with a carbon tax limited to rich countries, the change in international transport emissions represents roughly one‐eighth of the carbon leakage effect.