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Effects of Trade on Emissions in an Enlarged European Union: Some Comparative Dynamics Analyses with an Empirically Based Endogenous Growth Model

In: Globalization and Regional Economic Modeling

Author

Listed:
  • Nazmiye Balta-Ozkan

    (Policy Studies Institute)

  • Kieran P. Donaghy

    (Cornell University)

  • Clifford R. Wymer

    (International Monetary Fund (Retired))

Abstract

On May 1, 2004, the European Union (EU) expanded from 15 member states (EU15) to 25 member states. Both the EU15, as a single entity, and most of the new member states, individually, are signatory parties to the Kyoto Protocol with different levels of greenhouse gas (GHG) emission reduction targets to be achieved by 2012. While the emissions of these new entrants are already below their Kyoto targets, the EU15 has not reached its aggregate target yet. Economic integration will certainly increase the volume of trade between these countries, through which their economic growth rates and emissions will be affected.1 In this study, we analyze possible environmental and economic impacts of increasing trade between the EU15 and the so-called ‘new accession countries’ (NAC13).2 In focusing on these issues, we take a different approach than has been followed in the extant literature. We employ a two-bloc representative agent model with both endogenous growth and endogenous technological change whose parameters have been estimated from available time series.

Suggested Citation

  • Nazmiye Balta-Ozkan & Kieran P. Donaghy & Clifford R. Wymer, 2007. "Effects of Trade on Emissions in an Enlarged European Union: Some Comparative Dynamics Analyses with an Empirically Based Endogenous Growth Model," Advances in Spatial Science, in: Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), Globalization and Regional Economic Modeling, chapter 15, pages 353-392, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-72444-5_15
    DOI: 10.1007/978-3-540-72444-5_15
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    Cited by:

    1. Kieran P. Donaghy, 2021. "Implications for Regional Science of the “Rebuilding Macroeconomic Theory Projectâ€," International Regional Science Review, , vol. 44(3-4), pages 363-384, May.

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