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The Carbon Content of Austrian Trade Flows in the European and International Trade Context

Author

Listed:
  • Birgit Bednar-Friedl
  • Thomas Schinko
  • Karl Steininger
  • Pablo Muñoz Jaramillo

Abstract

In this study CO2 emissions embodied in Austrian international trade are quantified employing a 66-region input output model of multidirectional trade. We find that Austria’s final demand CO2 responsibilities on a global scale are 38% higher than conventional statistics report (110 Mt-CO2 versus 79 Mt-CO2 in 2004). For each unit of Austrian final demand, currently two thirds of the thus triggered CO2 emissions occur outside Austrian borders. We then develop a 19-region computable general equilibrium model of Austria and its major trading partners and world regions to find that future Austrian climate policy can achieve the EU 20-20 emission reduction targets, but that its carbon trade balance would worsen considerably. Both unilateral EU and internationally coordinated climate policies affect Austrian international trade stronger than its domestic production.

Suggested Citation

  • Birgit Bednar-Friedl & Thomas Schinko & Karl Steininger & Pablo Muñoz Jaramillo, 2010. "The Carbon Content of Austrian Trade Flows in the European and International Trade Context," FIW Research Reports series II-005, FIW.
    • Handle: RePEc:wsr:ecbook:y:2010:m:01:i:ii-005
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    File URL: https://www.fiw.ac.at/wp-content/uploads/2023/02/SI05.ResearchReport.CarbonContent-1.pdf
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    File URL: https://www.fiw.ac.at/wp-content/uploads/2023/02/SI05.PolicyNote.CarbonContent.pdf
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    File URL: https://www.fiw.ac.at/wp-content/uploads/2023/02/SI06.ExecutiveSummary.FDI_Multinational-1.pdf
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    File URL: https://www.fiw.ac.at/wp-content/uploads/2023/02/SI05.Executive-Summary.CarbonContent.pdf
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    More about this item

    Keywords

    carbon leakage; Mulit-regional Input-Output Analysis; Multi-regional Computable General Equilibrium; Embodied emissions; Consumption-based principle; Carbon dioxide; Unilateral Climate Policy;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • 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
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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