environmental policy in the european union fostering the development of pollution havens abstract a pollution haven occurs when dirty industries from developed nations relocate to developing nations in order to avoid strict environmental standards or developed nations imports of dirty industries expand replacing domestic production the purpose of this study is to determine whether the european union eu has increased its imports of dirty goods from poorer less democratic countries during a period of more stringent environmental standards previous empirical studies such as those by levinson and taylor levinson a and taylor m s in press unmasking the pollution haven effect international economic review ederington levinson and minier ederington j levinson a and minier j 2005 footloose and pollution free review of economics and statistics 87 92 99 kahn and yoshino 2004 and ederington and minier ederington j and minier j 2003 is environmental policy a secondary trade barrier an empirical analysis canadian journal of economics 36 137 54 find evidence that united states imports are responsive to changes in environmental stringency but the effects of eu policy have not been examined as thoroughly our study follows kahn kahn m e 2003 the geography of us pollution intensive trade evidence from 1958 to 1994 regional science and urban economics 33 383 400 and examines the impact of industry energy intensity and toxicity measured by an energy index and a toxic release inventory tri index on imports into the eu at the 2 digit industry level from 1970 to 1999 we use the signing of the maastricht treaty to signify a period of more uniform and stringent community wide environmental standards 1993 1999 and identify the level of per capita gdp within an eu trading partner we find an increased amount of eu energy intensive trade with poorer countries during the period with more stringent eu environmental standards this result is not robust however when poorer countries are defined by oecd membership and geographic region we do not find an increased amount of eu toxic intensive trade with poorer countries although there is some evidence of increased eu imports of toxic goods from poorer oecd and non eu european countries for our full sample of trading partners in all regions the evidence supports the phh for eu energy intensive trade but not for toxic intensive trade results for regional trade analysis are less clear

co2 emissions of international freight transport and offshoring measurement and allocation abstract the growing offshoring process is the result of the fragmentation of production processes and the creation of global supply chains this process has increased final and intermediate imports but also the distance that goods travel in different stages until they reach the final consumer as well as the requirements of transport per unit of output and the volume of co 2 emissions generated in transporting them nowadays there is no generally accepted criterion for international transport pollution allocation no single country has the responsibility for emissions of international bunkers provided by ipcc in this paper we propose a new methodology for quantifying by sector the impact of international freight transport on total pollution and assigning responsibility to consumers this methodology considers the distance and the means of transport as key elements and uses input output methodology we apply this to the spanish economy combining data from input output tables import data and co 2 emission data the results show that the proportion of total co 2 emissions accounted for by emissions from international freight transportation allocated via the consumer criterion increase up to 4 16 between 1995 and 2000 as expected the industries where this offshoring process is more intense show the greatest increases in carbon emissions related to international transport these emissions are significantly higher than emissions embodied in domestic inputs in some of those industries where international fragmentation of production is relevant and increasing

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

life cycle carbon emission flow analysis for electricity supply system a case study of china abstract the carbon emission embodied in trade is fundamental for allocation of responsibility between producers and consumers this paper quantitatively analyzes embodied carbon emissions along the life cycle of electricity supply based on network theory a modified carbon emission flow model is established based on life cycle assessment considering power losses there is also a case study of china s interregional electricity supply system in 2010 focusing on two carbon emission carriers electricity coal transportation and electricity transmission results show that the total carbon emission flow reached 169 355 mtco 2 eq i e 4 67 of the life cycle carbon emission of this 61 1 was carried by electricity coal transportation before power generation and transmission owing to an uneven distribution of coal resources the eastern and southern regions are the major net sinks of carbon emission flows representing 52 9 and 27 8 of the total respectively because of their enormous energy imports in contrast the sanxi region and central china are major net sources of carbon emission flow the proposed model may help allocate environmental responsibility among different regions to guarantee balanced trans regional development

shared producer and consumer responsibility theory and practice abstract over the past decade an increasing number of authors have been examining the nexus of producer versus consumer responsibility often dealing with the question of how to assign responsibility for internationally traded greenhouse gas emissions recently a similar problem has appeared in drafting the standards for the ecological footprint while the method traditionally assumes a full life cycle perspective with full consumer responsibility a large number of producers businesses and industry sectors have started to calculate their own footprints see www isa org usyd edu au adding any producer s footprint to other producers footprints or to population footprints which all already cover the full upstream supply chain of their operating inputs leads to double counting the sum of footprints of producers and consumers is larger than the total national footprint the committee in charge of the footprint standardisation process was hence faced with the decades old non additivity problem posing the following dilemma for the accounting of footprints or any other production factor if one disallows double counting but wishes to be able to account for producers and consumers then one cannot impose the requirement of full life cycle coverage the supply chains of actors have to be curtailed somehow in order to avoid double counting this work demonstrates and discusses a non arbitrary method of consistently delineating these supply chains into mutually exclusive and collectively exhaustive portions of responsibility to be shared by all actors in an economy

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

earnings test non actuarial adjustments and flexible retirement abstract in response to the challenges of increasing longevity many countries have introduced flexibility reforms for their public pension systems a key measure of these reforms is the abolishment of earnings tests it is claimed that these reforms increase labor supply and therefore the financial sustainability of pension systems we build a simulation model to show that abolishing an earnings test may indeed create more labor supply but simultaneously reduce the average claiming age when adjustments remain less than actuarial as is the case in most european pension systems flexibility reforms may therefore worsen rather than improve the sustainability of public pension systems

embodied pollution in trade estimating the environmental load displacement of industrialised countries abstract the present paper sets out to aid in the development of environmental load displacement indicators developing the notion of the environmental memory of physical flows we estimated embodied pollution in trade of 18 industrialized countries with a the rest of the world and b developing countries from 1976 to 1994 we found that in the last years of analysis total imports of japan usa and western europe have entailed in general larger air pollutant emissions than local exports the balance of embodied emissions in trade beet seems to follow an inverted u shape across time in japan and western europe and an n shape in the us in the period of analysis japanese and european environmental terms of trade with developing countries improved from the japanese and european point of view whereas american environmental terms of trade with developing countries deteriorated over time although there is no statistical trend between income and embodied emissions in imports in a cross section analysis there does seem to be a positive relationship between both variables at a national level the results suggest that despite many shortcomings this type of assessment may shed useful insights on the international aspects of sustainable development

evaluating carbon dioxide emissions in undertaking offshored production tasks the case of china emerging economies like china india and mexico are becoming the world s manufacturing leaders through the engagement in offshoring production activities in achieving this status however they have met with difficult environmental issues this paper features an analysis of industry level panel data to examine the link between different offshoring tasks in china and carbon dioxide emissions through this analysis the environmental effects of offshored production are addressed specifically an input output model is presented thereby quantifying offshored production tasks in china the results show that iron and steel nonferrous metals is and chemicals ch generate the most carbon dioxide during production of processed goods additionally electrical machinery em and general machinery gm generate a higher amount of carbon dioxide during production of parts and components the results also show that those industries characterized by higher energy consumption have higher carbon dioxide co2 emissions induced by offshoring given these results it seems that any solutions geared towards reducing the energy consumption of entire manufacturing industries would be useful furthermore the results of the analyses presented here indicate that china would be responsible for working with developed countries to reduce carbon dioxide emissions through cooperative environmental regulation a globalization perspective is adopted to offer unique insight into the environmental issues faced by china the results of this paper would provide quantified actionable information for formulating practical industrial policies geared towards reducing carbon dioxide leakage

where have all the funds gone multiregional input output analysis of the european agricultural fund for rural development abstract the new european agricultural fund for rural development eafrd was purposely established to contribute to the promotion of sustainable rural development throughout the eu community this paper addresses the sustainability of the eafrd from a triple bottom line perspective in a multiregional input output model this framework allows us to study both the trade relations within the eu target regions and also the relations of the eu with some other regions in the world additionally the model allows us to determine the losses leakages or gains boosts and feedbacks of a wide range of effects on the other hand this framework allows a simultaneous consideration of socioeconomic and environmental fund effects to identify their causes and flows and to clarify and reallocate benefits and responsibilities across levels and regions the estimation of direct and indirect impact effects in an eu country clarifies the following a how the leakages to other regions generate a final economic impact that redistributes the prior fund distribution b how relevant the countries participation in global production chains are and c how the potential existence of an ecological unequal exchange is assessed the main data originate from the wiod database and the european network for rural development

parcelling virtual carbon in the pollution haven hypothesis the methodology proposed in this paper allows us to parcel the pollution haven hypothesis phh into a bi regional input output framework to analyse whether the specialisation of countries in different stages of production and or in final goods trading generates an increase or a decrease in global emissions as a consequence of international trade we apply the model to the spain china trade relationship as it existed in 2005 finding a phh of 29 667 ktco2 if this trade had not existed so each country had met its demand for intermediate and final goods global emissions would have been reduced by these 29 667 ktco2 of this phh 43 5 corresponds to imports of final goods 32 4 is related to imports of intermediate goods for the last stage of production the remainder 24 1 is caused by global value chains gvc between the countries only 3229 ktco2 of phh emissions are linked to domestic emissions from the sector in which the imports are produced the rest is explained by domestic linkages or successive rounds of domestic production which supports the existence of an indirect phh together with a trade growth in the last years the fall of trade barriers would have implied a transformation of global production chains that have boosted global emissions

consumer and producer environmental responsibility comparing two approaches abstract two different indicators of environmental responsibility were independently proposed by rodrigues et al rodrigues j domingos t giljum s schneider f 2006 designing an indicator of environmental responsibility ecological economics 59 3 256 266 and lenzen et al lenzen m murray j sack f wiedmann t 2007 shared producer and consumer responsibility theory and practice ecological economics 61 27 42 these indicators are both supposed to reflect the indirect effects of consumer and producer behavior in the generation of environmental pressure in this paper we compare their mathematical properties and interpretation we conclude that they have different implications for environmental policy

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

unilateral co2 reductions and carbon leakage the consequences of international trade in oil and basic materials a recursively dynamic general equilibrium model featuring six world regions with trade in energy and non energy goods is used to simulate the period from 1990 through 2100 in 10 year intervals the simulations explore the effect of unilateral action by the oecd to curb global co2 emissions unilateral cuts create incentives for free riding by non participating regions so that global emissions are reduced by less than the amount that the oecd cuts back its regional emissions carbon leakage occurs through two channels first basic materials production increases in unconstrained regions resulting in increased carbon intensity of gdp second reductions in oecd oil imports cause the world oil price to fall leading to an increased energy intensity in the non participant regions in this paper we use a general equilibrium model to assess the extent to which these two mechanisms reduce the effectiveness of oecd reductions in curbing global co2 concentrations

the evolution of household induced value chains and their environmental implications abstract the growing fragmentation of production processes and expansion of international trade in the last decades have increased the scope and complexity of value added chains worldwide causing a rearrangement of sectoral linkages intra and inter regionally in terms of economic spillovers this implies that a dollar entering a particular economy nowadays follows a different path than a decade before permeating in longer interregional feedback loops and creating additional multiplier effects outside its region of origin however it also implies that the environmental burden that such this dollar generates has changed in scale and spatial distribution in this paper we explore the evolution of these paths over the period 1997 2008 and highlight the main drivers of observed structural changes that contribute to the surge or decline of the spatial distribution of economic spillovers and greenhouse gases emissions we specifically study the effects of an increase in income in the united states the country with the largest trade volume in the world we introduce an extended version of the temporal leontief inverse tli framework that allows tracing the evolutionary path of the american households multiplier in a quasi dynamic fashion isolating the contribution of expenditure patterns income trade and foreign structural change to the temporal evolution we find similar growing multiplier effects inside and outside the us due to services and manufacturing respectively but a declining local environmental burden due to changes in interindustry relations inside the us with declining manufacturing and a reduced emission intensity we also highlight the fragmentation process with declining foreign intraregional spillovers and increasing trade spillovers

changing industrial structure to reduce carbon dioxide emissions a chinese application abstract increasing concern about carbon dioxide co2 emission reduction demands knowledge about the production structure of an economy information on productive linkages yields insight about forward and backward emission effects associated with sectoral inputs and outputs and serves as an essential starting point to identify the optimised industrial structure under the constraint of co2 emission this paper proposes a combined linkage analysis and multi objective programming approach to identify the key co2 emission sectors and the optimised production structure with respect to emission reduction target as a demonstration the proposed approach is applied to data from china in 2007 the result shows that to reduce co2 emissions from 5707 16 to 5452 12 million tonnes china needs to change its industrial structure by focussing on industrial groups as defined by linkage characteristics which would lead to a subsequent gdp decrease of 82 59 billion yuan from a policy standpoint the analytical techniques described in this paper can provide valuable information for planners and decision makers to formulate feasible and practical industrial polices with implications for co2 emissions

international trade and shared environmental responsibility by sector an application to the spanish economy abstract the aim of this paper is to define a shared responsibility criterion for analysing the impact of international trade on co 2 emissions applied to sectors with the approach proposed it is possible for sectors in a country to account for only a part of the emissions associated with exported and imported goods the agents considered as responsible for pollution are sectors two fold as producers and suppliers of intermediate inputs and final demand accounting for direct emissions linked to production and as consumers of intermediate inputs required for production accounting for direct and indirect emissions linked to consumption of inputs and the countries and foreign sectors that trade with these industries the responsibility of emissions is shared by all the participants along the global product chain depending on the value added of each step the criterion is applied to the spanish economy for the period 2000 to 2005 and proves useful for determining what economic policies may be suitable for mitigating anthropogenic impact on the environment and for including all the agents of the supply chain in the development of sustainable supply chain management

fulfilling the kyoto protocol in spain a matter of economic crisis or environmental policies abstract in 2008 spain exceeded by 20 9 the co2 emissions allowed by the kyoto protocol for 2012 the financial and economic crisis has transformed these figures as production fell so did energy demand and with it co2 emissions will the spanish economic crisis allow spain to fulfill its commitments with this in mind we have developed an extended input output model able to forecast energy demand and compute co2 emissions linked to the consumption of energy goods petroleum products gas and coal the results show that the crisis and in particularly the stagnation of the construction industry is only one of the pillars which help to contain these emissions at 6 81 the possibility of incorporating environmental policies new technologies and increases in the price of crude oil in these simulations means an even greater reduction of emissions than the impact of the crisis 9 76 the final result of our most pessimistic realistic scenario is that in 2012 spain will exceed its co2 emissions linked to the combustion of energy goods by only 0 9

hiring older employees do the age limits of early retirement and the contribution rates of firms matter we examine the effects of a finnish pension reform on firms incentives to hire older employees the reform restricted the eligibility ages for early retirement and changed the size related contribution rates of firms according to our theoretical model the positive effect on the values of new hires extends to age groups younger than those directly affected by the reform and the effects are strongest in the largest firms these model predictions were confirmed in a difference in difference in differences analysis on the probability of the hiring of workers of different ages in firms of different sizes

globalization outsourcing and wage inequality there is considerable debate over whether international trade has contributed to the declining economic fortunes of less skilled workers one issue that has become lost in the current discussion is how firms respond to import competition and how these responses in turn are transmitted to the labor market in previous work we have argued that outsourcing by which we mean the import of intermediate inputs by domestic firms has contributed to an increase in the relative demand for skilled labor in the united states if firms respond to import competition from low wage countries by moving non skill intensive activities abroad then trade will shift employment towards skilled workers within industries in this paper we extend our previous work by combining new import data from the revised nber trade database with disaggregated data on input purchases from the census of manufactures we construct industry by industry estimates of outsourcing for the period 1972 1990 and reexamine whether outsourcing has contributed to an increase in relative demand for skilled labor our main finding is that outsourcing can account for 31 51 of the increase in the relative demand for skilled labor that occurred in u s manufacturing industries during the 1980s compared to our previous estimate of 15 33 this abstract was borrowed from another version of this item

income based environmental responsibility abstract a strong mitigation effort is underway to reduce the levels of anthropogenic greenhouse gas emissions an allocation of the mitigation effort among multiple agents requires understanding which agent is responsible for what emissions according to a defined measure of carbon responsibility the metric adopted by current international climate policy is production based or territorial responsibility however other types of responsibility have been discussed in the literature namely consumption based or upstream responsibility and downstream responsibility in this paper we study the latter which is little explored in the literature we clarify the term through a novel nomenclature income based responsibility and present a case study with the quantification of income based responsibility for 112 world regions and the comparison of the results with production and consumption based responsibilities