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The Game of Trading Jobs for Emissions

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  • Arto, I.
  • Rueda-Cantuche, José M.
  • Dietzenbacher, E.
  • Andreoni, V.
  • Mongelli, I.
  • Genty, A.
  • Villanueva, A.

Abstract

Following the international debate on the implications of international trade for global climate policy, this paper analyses the role of international trade in the growth of GHG emissions and introduces the important topic of the economic benefits related to emission generation. We use a multiregional input-output model and the World Input-Output Database to decompose the change in the evolution of GHG emissions in the period 1995-2008. We find that i) the evolution of emissions is mainly driven by the growth in the level of domestic final demand; ii) trade plays a secondary but relevant role in the growht of GHG emissions; iii) technological change contributes notably to offset the other two factors. We have also assessed the employment and greenhouse gas (GHG) generated worldwide by the production of exports. We show that, international trade should not be ignored when assessing the options for reducing global GHG emissions, since 24% of global GHG emissions are linked to trade. When doing that, it should bear in mind that 20% of the employment around the world is generated by international trade.

Suggested Citation

  • Arto, I. & Rueda-Cantuche, José M. & Dietzenbacher, E. & Andreoni, V. & Mongelli, I. & Genty, A. & Villanueva, A., 2012. "The Game of Trading Jobs for Emissions," Conference papers 332231, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332231
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    2. Koelbl, Barbara S. & van den Broek, Machteld A. & Wilting, Harry C. & Sanders, Mark W.J.L. & Bulavskaya, Tatyana & Wood, Richard & Faaij, André P.C. & van Vuuren, Detlef P., 2016. "Socio-economic impacts of low-carbon power generation portfolios: Strategies with and without CCS for the Netherlands," Applied Energy, Elsevier, vol. 183(C), pages 257-277.
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    5. Monsalve, Fabio & Zafrilla, Jorge Enrique & Cadarso, María-Ángeles, 2016. "Where have all the funds gone? Multiregional input-output analysis of the European Agricultural Fund for Rural Development," Ecological Economics, Elsevier, vol. 129(C), pages 62-71.
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    7. Xu, Xianshuo & Zhao, Tao & Liu, Nan & Kang, Jidong, 2014. "Changes of energy-related GHG emissions in China: An empirical analysis from sectoral perspective," Applied Energy, Elsevier, vol. 132(C), pages 298-307.
    8. Wencheng Zhang & Shuijun Peng, 2016. "Analysis on CO 2 Emissions Transferred from Developed Economies to China through Trade," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(2), pages 68-89, March.
    9. Kang, Jidong & Zhao, Tao & Liu, Nan & Zhang, Xin & Xu, Xianshuo & Lin, Tao, 2014. "A multi-sectoral decomposition analysis of city-level greenhouse gas emissions: Case study of Tianjin, China," Energy, Elsevier, vol. 68(C), pages 562-571.
    10. Zhang, Wencheng & Wei, Rui & Peng, Shuijun, 2020. "The oil-slick trade: An analysis of embodied crude oil in China's trade and consumption," Energy Economics, Elsevier, vol. 88(C).
    11. Grebel, Thomas & Stützer, Michael, 2014. "Assessment of the environmental performance of European countries over time: Addressing the role of carbon leakage and nuclear waste," Ilmenau Economics Discussion Papers 90, Ilmenau University of Technology, Institute of Economics.
    12. Wei, Rui & Zhang, Wencheng & Peng, Shuijun, 2022. "Energy and greenhouse gas footprints of China households during 1995–2019: A global perspective," Energy Policy, Elsevier, vol. 164(C).
    13. Ya Liu & Yuhuan Zhao & Hao Li & Song Wang & Yongfeng Zhang & Ye Cao, 2018. "Economic Benefits and Environmental Costs of China's Exports: A Comparison with the USA Based on Network Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(4), pages 106-132, July.
    14. Giovanni Marin & Roberto Zoboli, 2016. "The integrated economic and environmental footprint of the EU: domestic and global effects of a transition to services," SEEDS Working Papers 0816, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2016.
    15. Kucukvar, Murat & Cansev, Bunyamin & Egilmez, Gokhan & Onat, Nuri C. & Samadi, Hamidreza, 2016. "Energy-climate-manufacturing nexus: New insights from the regional and global supply chains of manufacturing industries," Applied Energy, Elsevier, vol. 184(C), pages 889-904.
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    17. Andreoni, Valeria, 2017. "Energy Metabolism of 28 World Countries: A Multi-scale Integrated Analysis," Ecological Economics, Elsevier, vol. 142(C), pages 56-69.
    18. Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2024. "Decarbonisation and Specialisation Downgrading: the double harm of GVC Integration," LEM Papers Series 2024/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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