china s balance of emissions embodied in trade approaches to measurement and allocating international responsibility international trade is characterized not only by the flow of capital and goods but also by the energy and emissions embodied in goods during their production this paper investigates the evolving role that chinese trade is playing in the response to climate change by estimating the scale of emissions embodied in china s current trade pattern and demonstrating the magnitude of the difference between the emissions it produces some of which are incurred to meet the consumption demands of the rest of the world and the emissions embodied in the goods it consumes estimating china s emissions on a consumption rather than a production basis both lowers its responsibility for carbon dioxide co2 emissions in 2006 from 5 500 to 3 840mtco2 and reduces the growth rate of emissions from an average of 12 5 per cent p a to 8 7 per cent p a between 2001 and 2006 the analysis indicates that a reliable consumption based accounting methodology is feasible and could improve our understanding of which actors and states are responsible for emissions for example recent emissions reductions by developed countries may lack credibility if production has merely been displaced to countries such as china moreover in the current institutional context production methodologies encourage leakages through trade that may do more to displace than to reduce emissions both equity and efficiency concerns therefore suggest that emissions embodied in trade should receive special attention in the distribution of post kyoto abatement burdens

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

the impact of domestic trade on china s regional energy uses a multi regional input output modeling to systematically reveal how domestic trade impacts on china s regional energy uses an interprovincial input output modeling is carried out to address demand derived energy requirements for the regional economies in 2007 based on the recently available data both the energy uses embodied in final demand and interregional trade are investigated from the regional and sectoral insights significant net transfers of embodied energy flows are identified from the central and western areas to the eastern area via interregional trade shanxi is the largest energy producer and interregional embodied energy deficit receiver in contrast to guangdong as the largest energy user and surplus receiver by considering the impacts of interregional trade the energy uses of most eastern regions increase remarkably for instance shanghai hainan zhejiang beijing jiangsu and guangdong have their embodied energy requirements 87 49 19 97 13 64 12 60 6 46 and 6 38 times of their direct energy inputs respectively in contrast the embodied energy uses of some central and western regions such as inner mongolia shanxi xinjiang shaanxi and guizhou decrease largely the results help understand the hidden network linkages of interregional embodied energy flows and provide critical insight to amend china s current end reduction oriented energy policies by addressing the problem of regional responsibility transfer

linear and nonlinear foreign exchange rate exposures of german nonfinancial corporations this paper investigates whether the low significance of the impact of foreign exchange rate risk on firm value reported in previous studies can be explained by the fact that only the linear exposure component has been estimated or that exchange rate indices were used for a comprehensive sample of german firms empirical evidence is presented for the existence of significant linear and nonlinear exposures which can be identified for bilateral as well as multilateral foreign exchange rates the percentage of foreign sales measures of firm liquidity and industry sectors are significant determinants of the exposure

an econometric study of co2 emissions energy consumption income and foreign trade in turkey abstract this study attempts to empirically examine the dynamic causal relationships between carbon emissions energy consumption income and foreign trade in the case of turkey using the time series data for the period 1960 2005 this research tests the interrelationship between the variables using the bounds testing to cointegration procedure the bounds test results indicate that there exist two forms of long run relationships between the variables in the case of first form of long run relationship carbon emissions are determined by energy consumption income and foreign trade in the case of second long run relationship income is determined by carbon emissions energy consumption and foreign trade an augmented form of granger causality analysis is conducted amongst the variables the long run relationship of co2 emissions energy consumption income and foreign trade equation is also checked for the parameter stability the empirical results suggest that income is the most significant variable in explaining the carbon emissions in turkey which is followed by energy consumption and foreign trade moreover there exists a stable carbon emissions function the results also provide important policy recommendations

supply side structural effect on carbon emissions in china abstract this paper carries out a structural decomposition analysis sda of production related carbon emissions in china from 1992 to 2005 by adopting the ghosh input output model it finds that the supply side structure measured by sectoral shares in value added increased production related carbon emissions in 1992 2002 mainly due to the rapid growth of manufacturing sectors but reduced them in 2002 2005 thanks to the decreased shares of carbon intensive sectors whatever the supply side structure forward carbon multipliers of each sector or changes in supply side sectoral shares and related emissions effects calculated by adopting the ghosh input output model were different from their demand side counterparts estimated by adopting the leontief input output model the results suggest optimizing the supply side structure and lowering the forward carbon multipliers to control carbon emissions in the future

free trade and the environment development system abstract we develop a simulation model to analyze the trade environment development system that contains a number of important advances over the earlier and current theoretical models our model like other models has an income induced pollution policy allows country factor endowments to influence trade patterns and allows production factors to be mobile intersectorally unlike other theoretical models our model treats pollution stemming from both production and consumption in a way that does justice to empirical observations we model pollution policy explicitly as an abatement investment thus effectively allowing for differences in pollution intensive technology across countries in addition we allow for an internationally traded intermediate good a natural resource as a result of this novel approach we find that 1 the benefits of trade i can be either positive or negative and ii depend on country endowments and 2 the pollution effects of trade are closely tied to the benefits of trade our model generally shows higher pollution levels under free trade than autarky however our results do not support the pollution haven hypothesis i e trade causes less pollution in developed countries and more pollution in developing ones some developing countries produce more of the pollution intensive good but ultimately consume less pollution under autarky because they have higher per capita income and thus invest more heavily in environmental upgrading under autarky

the growth tax in the united states by providing public goods including law and order national defense and income redistribution that expands the gains from exchange the scope and membership of the constitutional agreement government expenditures act as a positive externality on the growth rate beyond that level taxes act as a negative externality in this paper a simple model is formulated and the optimal growth maximizing tax rate found empirical estimation finds it to be in the range of 21 5 22 9 percent the effect of taxation beyond this level is a cumulative loss of about 30 trillion 1972 dollars in gnp over the period 1949 89

trade the pollution haven hypothesis and the environmental kuznets curve examining the linkages abstract this paper examines the extent to which the ekc inverted u relationship can be explained by trade and specifically the migration or displacement of dirty industries from the developed regions to the developing regions the pollution haven hypothesis phh using detailed data on north south trade flows for pollution intensive products the evidence for the phh is assessed emissions of 10 air and water pollutants are then estimated controlling for trade openness structural change and dirty north south trade flows evidence of pollution haven effects is found although such effects do not appear to be widespread and appear to be relatively small compared to the roles played other explanatory variables

productivity in the united states and its relationship to government activity an analysis of 57 years 1929 1986 under the classical supply side paradigm of productivity grouth raising government economic above rudimentary levels integrates markets and provides useful public goods which enhance growth beyond some point however increasing government activity discourages growth through tax disincentives and by rewarding dependence on government expenditures defining government economic activity to be government expenditures as a percentage of gnp this study looks first at data for the period 1889 1986 and shows that the u s economy has experienced what is predicted by the supply side paradigm in addition the study presents an econometric analysis of government s effects on productivity for the period 1929 1986 using a standard neoclassical growth model this analysis validates the classical supply side paradigm and shows that maximum productivity growth occurs when government expenditures represent about 20 of gnp far less than the 35 which existed in 1986

prioritizing towards a green export portfolio for india an environmental input output approach abstract proponents of free trade have often hailed international trade as an engine of economic growth however the foreign trade sector like many other sectors in developing countries frequently involves these countries walking a tightrope between their developmental objectives and environmental goals in this regard prioritizing for developing a green yet internationally competitive export portfolio provides a quintessential win win solution to the problem this study factors in both environmental benignity indicated by total co2 emission intensity as well as trade competitiveness indicated by revealed comparative advantage index in identifying the ideal indian export portfolio the analysis calculates the level of direct and indirect emissions from the foreign trade sector exports and imports using the environmental input output eio matrix for 2003 04 for india that has been jointly developed by researchers from keio university japan and the energy and resources institute teri new delhi the derived basket is compared to the current portfolio to estimate the potential saving from compositional changes and to suggest directions for policymaking to emphasize or de emphasize the export of certain categories of exports

economic growth trade and energy implications for the environmental kuznets curve abstract the environmental kuznets curve ekc hypothesis asserts that pollution follows an inverted u path with respect to economic growth the ekc has been explained in terms of structural changes in the composition of economic output and increased environmental regulation at higher income levels while some authors have incorporated the impact of trade policy orientation on the ekc the impact of the actual movement between countries of goods that embody pollution has not been considered this paper attempts to econometrically quantify the effect using pooled cross country and time series data the ekc hypothesis is examined with respect to commercial energy consumption the source of many serious environmental problems it was found that while both industrializing and industrialized countries have added to their energy requirements by exporting manufactured goods the growth has been substantially higher in the former at the same time industrialized countries have been able to reduce their energy requirements by importing manufactured goods exports of manufactured goods by industrialized countries has thus been an important factor in generating the upward sloping portion of the ekc and imports by industrialized countries have contributed to the downward slope

impacts of the us dollar usd exchange rate on economic growth and the environment in the united states abstract this paper investigates the impact of the usd exchange rate on economic growth and the environment in the united states by using a structural vector autoregression svar model the analysis is based on quarterly country level data on the real trade weighted us dollar index petroleum consumption renewable energy consumption net imports of pollution intensive products real gdp and co2 emissions during the 1989 2015 the result shows that the usd exchange rate is positively related to petroleum consumption net imports of the united states in pollution intensive industries with major u s trading partners real gdp and co2 emissions moreover petroleum consumption increases real gdp and domestic co2 emission levels while net imports of pollution intensive products decrease real gdp and does not significantly affect co2 emissions

dirty industries patterns of change in industrial countries this article concerns itself with the environmental role of heavily polluting industries since 1970 analysing its development in 11 basic industries as well as electricity production and road transport in 32 industrial countries it argues for a green industrial policy demonstrating that other mitigations of environmental pressure in industrial countries end of pipe treatment relocation to the third world structural change in the industrial sector and even environmentally oriented modernization have so far been unable to solve the problems of dirty industries although some approaches have shown some promise

globalisation and sustainability environmental kuznets curve and the wto abstract economic globalisation is seen by many as a driving force for global economic growth yet opinion is divided about the benefits of this process as highlighted by the wto meeting in seattle in late 1999 proponents of economic globalisation view it as a positive force for environmental improvement and as a major factor increasing the likelihood of sustainable development through its likely boost to global investment these proponents mostly appeal to analysis based on the environmental kuznets curve ekc to support their views about environmental improvement but ekc analysis has significant deficiencies furthermore it is impossible to be confident that the process of economic globalisation will result in sustainable development if weak conditions only are satisfied strong conditions probably need to be satisfied to achieve sustainable development and given current global institutional arrangements these are likely to be violated by the economic globalisation process global political action seems to be needed to avert a deterioration in the global environment and to prevent unsustainability of development this exposition demonstrates the limitations of ekc analysis identifies positive and negative effects of economic globalisation on pollution levels and highlights connections between globalisation and the debate about whether strong or weak conditions are required for sustainable development the article concludes with a short discussion of the position of wto in relation to trade and the environment and the seemingly de facto endorsement of wto of weak conditions for sustainable development it suggests that wto s relative neglect of environmental concerns is no longer politically tenable and needs to be reassessed in the light of recent developments in economic analysis the skew of economic growth e g in favour of developing countries is shown to be extremely important from a global environmental perspective

global warming agreements international trade and energy carbon embodiments an input output approach to the italian case abstract in the kyoto protocol the absence of green house gases ghgs commitments of developing countries non annex i and the more flexible terms of implementation which are allowed to countries shifting toward a market economy transition economies naturally lead to the absence or to less constraining national measures and policies of reduction of the ghgs emissions which in turn may determine a comparative advantage in the production of the highest energy carbon intensive commodities for these countries these arguments are valid also considering the future implementation of the european emission allowance trading scheme eats thus developing countries may become a haven for the production of not environmental friendly commodities in this case the so called pollution haven hypothesis stating that due to freer international trade the comparative advantage may change the economic structure and consequently the trade patterns of the countries linked by trade relationships could occur this would lead to the increase of the transfers of energy and carbon embodied in traded commodities from developing countries and transition economies toward kyoto or eats constrained countries the aim of this paper is to verify if for italy as a kyoto and eats complying country evidence of a change in the trade patterns occurred on the basis of the pollution haven hypothesis does exist and to estimate the magnitude of the under estimation of the carbon actually emitted the carbon leakage the input output model has been used to calculate the intensities of energy consumption and the related green house gases emission for each italian economic sector

redistributive politics with distortionary taxation abstract this paper proposes a first step towards a positive theory of tax instruments we present a model of redistributive politics that extends those of myerson r myerson incentives to cultivate minorities under alternative electoral systems amer polit sci rev 87 1993 856 869 and lizzeri and persico a lizzeri n persico the provision of public goods under alternative electoral incentives amer econ rev 91 2001 225 239 two politicians compete in terms of targeted redistributive promises financed through distortionary taxes we solve for the case of both targetable and non targetable taxes we prove that there is an imperfect efficiency targetability trade off on the tax side politicians prefer targetable taxes over non targetable ones especially when the latter are less efficient yet targetable taxation is always used even when it is very inefficient compared to non targetable taxes

governance and renewable energy investment in mena countries how does trade matter abstract the middle east and north africa mena countries have recently developed renewable energy re markets however their rate of investment in renewable energy remains small compared to other regions in the world despite their relatively abundant endowments particularly in wind and solar while the literature identifies some barriers to investment in renewable energy we assume that the investment of mena countries could be impeded by specific governance factors furthermore we consider recent literature showing that trade openness reduces the negative effects of weak governance in this paper we empirically investigate the link between governance openness and renewable energy investment in the mena region using panel data for 15 mena countries over the period 1996 2013 our results prove that high institutional quality is associated with re investment in mena countries in addition this relationship seems to be conditional on the trade regime our results are robust to several measures of renewable energy investment and governance as well as to an alternative econometric set up

the optimal size of government in the economic analysis of the theory of government two views of government are evident the pigovian view sees government as a benevolent actor striving to correct for the inadequacies and excesses of an unrestrained marketplace the public choice view of government portrays government as the tool of special interest groups as likely to generate distortions as to correct them in this paper a model of government that incorporates both views will be developed and then empirically tested the model developed assumes that all expenditures by the government are inputs into the private sector production treating government expenditures as inputs into the production of private sector output there is some optimal size of government that maximizes private sector output the model incorporates a general production function for private sector output output is a function of private labor private capital and government expenditures the pigovian and public choice views of government are reflected in the assumed impact of g on the marginal productivities of l and k the model is tested using united states data and a cobb douglas production function estimates indicate that the 1983 level of government expenditures exceeds by 87 percent the level that would maximize private sector output reducing government from 491 billion to 263 billion and shifting the freed labor to the private sector would increase output from 1187 billion to 1451 billion

state capacity and economic development causal mechanism or correlative filter abstract in this paper we explore why there are no examples of societies with low state capacity and high economic development we argue that such an outcome is unlikely because of the nature of investments in state capacity societies that become rich in the absence of a strong state invite predation by societies that develop such states thus societies invest in state capacity in part to plunder other societies wealth those investments are a form of rent seeking potentially preyed upon societies are forced to invest in state capacity in turn so as to deter potential attackers this entails that as soon as a rent seeker enters the game the likelihood of a low capacity high development society surviving falls this explains the historical lack of such societies we thus interpret state capacity not as a causal condition for widespread economic prosperity but a survivability condition for enjoying this prosperity

co2 emissions embodied in china us trade input output analysis based on the emergy dollar ratio to gain insight into changes in co2 emissions embodied in china us trade an input output analysis based on the emergy dollar ratio edr is used to estimate embodied co2 emissions a structural decomposition analysis sda is employed to analyze the driving factors for changes in co2 emissions embodied in china s exports to the us during 2002 2007 the results of the input output analysis show that net export of co2 emissions increased quickly from 2002 to 2005 but decreased from 2005 to 2007 these trends are due to a reduction in total co2 emission intensity a decrease in the exchange rate and small imports of embodied co2 emissions the results of the sda demonstrate that total export volume was the largest driving factor for the increase in embodied co2 emissions during 2002 2007 followed by intermediate input structure direct co2 emissions intensity had a negative effect on changes in embodied co2 emissions the results suggest that china should establish a framework for allocating emission responsibilities enhance energy efficiency and improve intermediate input structure

trade liberalization economic specialization and the environment abstract a great deal has been written and a great deal of debate has raged on the effects of international trade and trade liberalization on the environment given that it is only recently that the general agreement on tariffs and trade has begun to address the interdependence of the international economy and the international environment in a systematic way it is likely that the debate will continue for quite some time it will be argued that the economic case for there being benign environmental consequences associated with trade liberalization is flawed in important ways this is due to statistical empirical and conceptual issues which affect the estimation of such effects moreover it will be argued that despite the intensity of the debate the effects of international trade on the environment have in fact only been addressed in an incidental manner rather the debate has concentrated on factors that may coexist with trade but not on the role of trade itself this has served to obscure the more fundamental environmental effects of trade liberalization through the homogenization and specialization of ecosystems

a combined input output and sensitivity analysis approach to analyse sector linkages and co2 emissions abstract this paper proposes a methodology which identifies the main productive linkages between activity branches in terms of co2 emissions and applies this methodology to the spanish case it suggests that emissions are related to the input output productive relationships within an economy to the co2 emissions intensity of sectors and to the structure of final demand of different sectors a formal analysis of these factors is carried out by means of an input output framework combined with sensitivity analysis and lineal programming the most co2 emissions intensive productive relationships in spain are shown this consideration of the main linkages contributes to the identification of the key sectors and facilitates the design of effective policy measures aimed at co2 emissions abatement

imbalance of carbon emissions embodied in the us japan trade temporal change and driving factors abstract in us japan trade japan ran both economic export surplus and export co2 emission surplus with the us positive net monetary exports for japan were actually a kind of economic losses of the us while positive net export co2 emissions or net co2 emissions embodied in us japan trade were regarded as pollution transfer from u s to japan however due to lack of unified measurement units and standards between the two research fields it is difficult to directly assess whether positive effects of u s via carbon transfer outweigh negative effects caused by economic losses the study transforms absolute values of net monetary exports and net export co2 emissions from 2000 to 2011 in us japan trade into two ratios the ratio of net monetary exports to gdp of u s and the ratio of net embodied co2 emissions to total co2 emissions of the us by comparison the result shows that on average net monetary exports between u s and japan accounted for 0 45 of american gdp while ratio of net export emissions to aggregate consumption based co2 emissions of u s kept about 0 20 during the research period concerned which indicated that negative effects of economic losses in u s outweighed positive effects via carbon transfer in us japan trade furthermore a structural analysis of co2 emissions embodied in us japan trade during the 11 years is given the most significant driver was emission coefficients defined as co2 emissions per unit of energy consumption the driving force of emission coefficients led to dramatic reduction in co2 flows from japan to the us and thus caused decrease of net export emissions which also explained the major reason for the low ratio of export emissions to total co2 emissions of the us finally according to sectoral distributions of co2 flows between japan and the us emission sources of two countries presented different characteristics