IDEAS home Printed from https://ideas.repec.org/p/fdi/wpaper/659.html
   My bibliography  Save this paper

What Role for Trade in a Post 2012 Global Climate Policy Regime

Author

Listed:
  • John WHALLEY

    (University of Western Ontario)

Abstract

This paper discusses the role that trade can potentially play in both negotiating and operating a post Kyoto/post 2012 global climate policy regime. As an addition to the bargaining set for a global climate negotiation, trade in principle widens the range of jointly beneficial potential outcomes and can in this sense be a potential facilitator of an agreed global climate regime. The reverse is also true, that in a linked climate-trade-finance global policy coordination structure that goes well beyond what was envisioned at Bretton Woods, climate now added to the global policy bargaining set also offers the prospect of potentially stronger trade disciplines (and even beyond WTO disciplines being negotiated). Trade policy can as well be an instrument for the implementation of a global climate regime, since trade provides a mechanism for achieving an internalization outcome for the global externality that climate change represents, and that provides a potentially more efficient outcome and also helps meet distributional objectives. In short, trade added to the emerging post 2012 climate regime can both expand the bargaining set for both (effectively linked) negotiations, and additionally provide an instrument for the implementation of an agreed outcome.

Suggested Citation

  • John WHALLEY, 2011. "What Role for Trade in a Post 2012 Global Climate Policy Regime," Working Papers P22, FERDI.
    • Handle: RePEc:fdi:wpaper:659
    as

    Download full text from publisher

    File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/P22_Whalley_WEB.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Scott BARRETT, 2011. "Rethinking Climate Change Governance and its Relationship to the World Trading System," Working Papers P20, FERDI.
    2. Aaditya Mattoo & Arvind Subramanian & Dominique van der Mensbrugghe & Jianwu He, 2009. "Reconciling Climate Change and Trade Policy," Working Papers 189, Center for Global Development.
    3. Lisandro Abrego & Carlo Perroni & John Whalley & Randall M. Wigle, 2001. "Trade and Environment: Bargaining Outcomes from Linked Negotiations," Review of International Economics, Wiley Blackwell, vol. 9(3), pages 414-428, August.
    4. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    5. Henrik Horn & Petros C. Mavroidis, 2011. "To B(TA) or Not to B(TA)? On the Legality and Desirability of Border Tax Adjustments from a Trade Perspective," The World Economy, Wiley Blackwell, vol. 34(11), pages 1911-1937, November.
    6. Yan Dong & John Walley, 2012. "How Large Are The Impacts Of Carbon Motivated Border Tax Adjustments?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-28.
    7. repec:bla:reviec:v:9:y:2001:i:3:p:414-28 is not listed on IDEAS
    8. Stef Proost & John B. Braden (ed.), 1998. "Climate Change, Transport and Environmental Policy," Books, Edward Elgar Publishing, number 1276.
    9. Ben Lockwood & John Whalley, 2010. "Carbon‐motivated Border Tax Adjustments: Old Wine in Green Bottles?," The World Economy, Wiley Blackwell, vol. 33(6), pages 810-819, June.
    10. Scott Barrett, 2011. "Rethinking Climate Change Governance and Its Relationship to the World Trading System," The World Economy, Wiley Blackwell, vol. 34(11), pages 1863-1882, November.
    11. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Scott BARRETT, 2011. "Rethinking Climate Change Governance and its Relationship to the World Trading System," Working Papers P20, FERDI.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicole A. MATHYS & Jaime DE MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers P37, FERDI.
    2. Jaime de Melo, 2015. "Trade in a ‘Green Growth’ Development Strategy: Issues and Challenges," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 22, pages 553-580, World Scientific Publishing Co. Pte. Ltd..
    3. Sorgho, Zakaria & Tharakan, Joe, 2022. "Do PTAs with environmental provisions reduce GHG emissions? Distinguishing the effectiveness of climate-related provisions," LIDAM Discussion Papers CORE 2022012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Jaime de Melo, 2012. "Trade in a 'Green Growth' Development Strategy Global Scale Issues and Challenges," Working Papers 2012.47, Fondazione Eni Enrico Mattei.
    5. Tobias Nielsen & Nicolai Baumert & Astrid Kander & Magnus Jiborn & Viktoras Kulionis, 2021. "The risk of carbon leakage in global climate agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(2), pages 147-163, June.
    6. Dieter Helm & Cameron Hepburn & Giovanni Ruta, 2012. "Trade, climate change, and the political game theory of border carbon adjustments," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(2), pages 368-394, SUMMER.
    7. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
    8. Zakaria Sorgho & Tharakan Joe, 2020. "Do PTAs with environmental provisions reduce emissions? Assessing the effectiveness of climate-related provisions?," Working Papers hal-03004353, HAL.
    9. Partha Sen, 2016. "Unilateral Emission Cuts and Carbon Leakages in a Dynamic North–South Trade Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 131-152, May.
    10. Partha Sen, 2018. "Unilateral Policies, Competitiveness and the ‘Green Paradox’ in a Dynamic North–South Model," Arthaniti: Journal of Economic Theory and Practice, , vol. 17(2), pages 113-139, December.
    11. Winston W. Chang, 2017. "World Trade and the Environment: Issues and Policies," Pacific Economic Review, Wiley Blackwell, vol. 22(3), pages 435-479, August.
    12. Scott BARRETT, 2011. "Rethinking Climate Change Governance and its Relationship to the World Trading System," Working Papers P20, FERDI.
    13. Partha Sen, 2013. "Unilateral Emission Cuts And Carbon Leakages In A North-South Trade Model," Working papers 232, Centre for Development Economics, Delhi School of Economics.
    14. Scott BARRETT, 2011. "Rethinking Climate Change Governance and its Relationship to the World Trading System," Working Papers P20, FERDI.
    15. Jaime de Melo & Nicole A. Mathys, 2012. "Concilier les politiques commerciales et les politiques climatiques," Revue d’économie du développement, De Boeck Université, vol. 20(2), pages 57-81.
    16. Nicole A. MATHYS & Jaime DE MELO, 2011. "The Political Economy of Climate Change Policies: Political Economy Aspects of Climate Change Mitigation Efforts," Working Papers P24, FERDI.
    17. Xia, Yan & Kong, Yishu & Ji, Qiang & Zhang, Dayong, 2019. "Impacts of China-US trade conflicts on the energy sector," China Economic Review, Elsevier, vol. 58(C).
    18. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    19. Zakaria Sorgho & Joe Tharakan, 2022. "Do PTAs with Environmental Provisions Reduce GHG Emissions? Distinguishing the Role of Climate-Related Provisions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 709-732, November.
    20. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christoph Böhringer & Thomas F. Rutherford, 2017. "Paris after Trump: An Inconvenient Insight," CESifo Working Paper Series 6531, CESifo.
    2. Michael Jakob & Jan Christoph Steckel & Ottmar Edenhofer, 2014. "Consumption- Versus Production-Based Emission Policies," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 297-318, October.
    3. Christoph Böhringer & Knut Einar Rosendahl & Halvor Storrøsten, 2021. "Smart hedging against carbon leakage [An overview of the GTAP 9 data base]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(107), pages 439-484.
    4. Achim Hagen & Jan Schneider, 2017. "Boon or Bane? Trade Sanctions and the Stability of InternationalEnvironmental Agreements," ZenTra Working Papers in Transnational Studies 75 / 2017, ZenTra - Center for Transnational Studies.
    5. Hideo Konishi & Minoru Nakada & Akihisa Shibata, 2018. "Free Trade Agreements with Environmental Standards," Boston College Working Papers in Economics 972, Boston College Department of Economics.
    6. Böhringer, Christoph & Rosendahl, Knut Einar & Storrøsten, Halvor Briseid, 2017. "Robust policies to mitigate carbon leakage," Journal of Public Economics, Elsevier, vol. 149(C), pages 35-46.
    7. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
    8. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
    9. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(3), pages 381-413, June.
    10. Li, Aijun & Du, Nan & Wei, Qian, 2014. "The cross-country implications of alternative climate policies," Energy Policy, Elsevier, vol. 72(C), pages 155-163.
    11. Böhringer, Christoph & Fischer, Carolyn & Rosendahl, Knut Einar, 2014. "Cost-effective unilateral climate policy design: Size matters," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 318-339.
    12. Li, Aijun & Lin, Boqiang, 2013. "Comparing climate policies to reduce carbon emissions in China," Energy Policy, Elsevier, vol. 60(C), pages 667-674.
    13. Alexandre SAUQUET, 2011. "Exploring the Nature of Strategic Interactions in the Ratification Process of the Kyoto Protocol," Working Papers 201119, CERDI.
    14. Jeremiás Máté Balogh & Tamás Mizik, 2023. "Global Impacts of Climate Policy and Trade Agreements on Greenhouse Gas Emissions," Agriculture, MDPI, vol. 13(2), pages 1-13, February.
    15. Jean Fouré & Houssein Guimbard & Stéphanie Monjon, 2013. "Border Carbon Ajustment in Europe and Trade Retaliation: What would be the Cost for European Union?," Working Papers 2013-34, CEPII research center.
    16. Li, Aijun & Zhang, Aizhen, 2012. "Will carbon motivated border tax adjustments function as a threat?," Energy Policy, Elsevier, vol. 47(C), pages 81-90.
    17. Balogh, Jeremiás Máté, 2021. "A kereskedelmi megállapodások szerepe a klímaváltozásban. Szakirodalmi áttekintés [The role of trade agreements in climate change. Systematic literature review]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 540-563.
    18. Jean-Marc Burniaux & Jean Chateau & Romain Duval, 2013. "Is there a case for carbon-based border tax adjustment? An applied general equilibrium analysis," Applied Economics, Taylor & Francis Journals, vol. 45(16), pages 2231-2240, June.
    19. Dongxu Chen & Xiaoying Chang & Tao Hong & Tao Ma, 2023. "Domestic Regional Synergy in Achieving National Climate Goals—The Role of Comparative Advantage in Emission Reduction," Land, MDPI, vol. 12(9), pages 1-23, September.
    20. Ian Sheldon & Steve McCorriston, 2012. "Climate policy and border tax adjustments: Might industrial organization matter?," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 9(2), pages 7-28, Julio-Dic.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fdi:wpaper:659. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vincent Mazenod (email available below). General contact details of provider: https://edirc.repec.org/data/ferdifr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.