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CO2 Emissions Embodied in International Trade — A Comparison on BRIC Countries

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  • Laike Yang

Abstract

International trade has strong impacts on climate change. Trade can act as a strong factor for some countries to transfer their own Green House Gas (GHG) emissions to their trade partners. In the last decade, BRIC countries (Brazil, Russia, India and China) have witnessed the highest economic growth rates as well as the fastest expansion in trade. Within the same time span they also emerged as the world’s largest GHG emitting countries. Now, the question arises, is this increase in pollution in BRIC countries due to international trade? Are these countries becoming so called global “pollution havens†? In this article, I use the single region input-output analysis model to assess the CO2 emissions embodied in trade in BRIC countries, and also identify if there are carbon leakages in these countries. The result shows that due to its massive export of manufacturing products, China has emitted a huge amount of CO2. Russia also has a big imbalance on trade embodied CO2 emission mainly due to its massive export of energy products. However, the paper finds that the increase in Brazil’s CO2 emissions is not related to trade but to land-use and agriculture and India actually benefits from the trade flow, environmentally.

Suggested Citation

  • Laike Yang, 2012. "CO2 Emissions Embodied in International Trade — A Comparison on BRIC Countries," Competence Centre on Money, Trade, Finance and Development 1203, Hochschule fuer Technik und Wirtschaft, Berlin.
    • Handle: RePEc:mtf:wpaper:1203
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    References listed on IDEAS

    as
    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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    3. Erik Dietzenbacher & Kakali Mukhopadhyay, 2007. "An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 427-449, April.
    4. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    5. Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
    6. Satoshi Nakano & Asako Okamura & Norihisa Sakurai & Masayuki Suzuki & Yoshiaki Tojo & Norihiko Yamano, 2009. "The Measurement of CO2 Embodiments in International Trade: Evidence from the Harmonised Input-Output and Bilateral Trade Database," OECD Science, Technology and Industry Working Papers 2009/3, OECD Publishing.
    7. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
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    Cited by:

    1. M. Zillur Rahman, 2013. "Relationship between Trade Openness and Carbon Emission: A Case of Bangladesh," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(4), pages 126-134.
    2. Chuanwang Sun & Lanyun Chen & Guangxiao Huang, 2019. "Decomposition Analysis of CO 2 Emissions Embodied in the International Trade of Russia," Sustainability, MDPI, vol. 12(1), pages 1-22, December.
    3. Zhou, Dequn & Zhou, Xiaoyong & Xu, Qing & Wu, Fei & Wang, Qunwei & Zha, Donglan, 2018. "Regional embodied carbon emissions and their transfer characteristics in China," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 180-193.

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    More about this item

    Keywords

    working paper; daadpartnership; finance-and-trade;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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