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International Carbon Trade and Domestic Climate Politics

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  • Kathryn Harrison

Abstract

This article theorizes about the implications for domestic climate politics of three distinct roles countries play in the global carbon supply chain: fossil fuel producer, manufacturer of carbon-intensive goods, and final consumer. Because international responsibility is assigned to territorial emissions, countries at either end of the global supply chain effectively evade environmental responsibility by shifting fossil fuel combustion to manufacturing countries. In so doing, they lessen the political challenges of reducing domestic emissions. Although exporters of carbon-intensive goods are reluctant to disadvantage local producers, importers can craft policies that both reduce territorial emissions and create local jobs. Ironically, fossil fuel exporters can emerge as leaders in reducing their own territorial emissions, a finding illustrated by case studies of British Columbia and Norway. The conclusion argues that shifting responsibility for carbon emissions to the point of either final consumption or fossil fuel extraction could facilitate an international climate agreement.

Suggested Citation

  • Kathryn Harrison, 2015. "International Carbon Trade and Domestic Climate Politics," Global Environmental Politics, MIT Press, vol. 15(3), pages 27-48, August.
  • Handle: RePEc:tpr:glenvp:v:15:y:2015:i:3:p:27-48
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    References listed on IDEAS

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    Cited by:

    1. Michael Lazarus & Harro van Asselt, 2018. "Fossil fuel supply and climate policy: exploring the road less taken," Climatic Change, Springer, vol. 150(1), pages 1-13, September.
    2. Sanjith Gopalakrishnan & Daniel Granot & Frieda Granot, 2021. "Consistent Allocation of Emission Responsibility in Fossil Fuel Supply Chains," Management Science, INFORMS, vol. 67(12), pages 7637-7668, December.
    3. Kathryn Harrison, 2020. "Political Institutions and Supply-Side Climate Politics: Lessons from Coal Ports in Canada and the United States," Global Environmental Politics, MIT Press, vol. 20(4), pages 51-72, Autumn.
    4. Philippe Le Billon & Berit Kristoffersen, 2020. "Just cuts for fossil fuels? Supply-side carbon constraints and energy transition," Environment and Planning A, , vol. 52(6), pages 1072-1092, September.
    5. Llop Maria, 2023. "Environmental Taxation and International Trade in a Tax-Distorted Economy," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-12, January.
    6. Fergus Green & Richard Denniss, 2018. "Cutting with both arms of the scissors: the economic and political case for restrictive supply-side climate policies," Climatic Change, Springer, vol. 150(1), pages 73-87, September.
    7. Christopher M. Dent, 2021. "Trade, Climate and Energy: A New Study on Climate Action through Free Trade Agreements," Energies, MDPI, vol. 14(14), pages 1-30, July.
    8. Michaël Aklin & Matto Mildenberger, 2020. "Prisoners of the Wrong Dilemma: Why Distributive Conflict, Not Collective Action, Characterizes the Politics of Climate Change," Global Environmental Politics, MIT Press, vol. 20(4), pages 4-27, Autumn.

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    More about this item

    Keywords

    climate politics; fossil fuels; carbon goods; trade; carbon trade;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade

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