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Trade, Transportation and the Environment

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  • Forslid, Rikard

Abstract

This paper analyzes the environmental impact of emissions related to trade and trans- portation. It is shown that transportation may in principle lower global emissions if the production sector is dirtier than the transport sector. The measure of a sector's dirtiness is related to the emissions taxes and the abatement efficiency within that sector. It is shown that a firm's abatement efficiency can be calculated from the emission-to-cost ratio times the emissions tax. Using Swedish data to rank 5-digit industries in terms of their dirtiness reveals that several production sectors have a higher dirtiness index than transportation does.

Suggested Citation

  • Forslid, Rikard, 2019. "Trade, Transportation and the Environment," CEPR Discussion Papers 14228, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14228
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    More about this item

    Keywords

    Emissions; Trade; Transportation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F18 - International Economics - - Trade - - - Trade and Environment

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