How Trade Sensitive Are Energy-Intensive Sectors?
AEA Papers and Proceedings
vol. 108,
May 2018
(pp. 130-35)
Abstract
For most governments looking to implement climate policy—and for interest groups looking to influence it—the effect of unilateral greenhouse gas regulation on employment, production, and emissions represents an overarching concern. Critical to improving analysis of climate policy, implications for energy-intensive, trade-exposed sectors are better empirical estimates of trade sensitivities. Ex ante analysis of climate policy and carbon leakage relies heavily on economic simulations of global trade. We estimate parameters related to trade sensitivity to help identify sectors at risk for carbon leakage and to calibrate the models used to evaluate policy alternatives for addressing these problems.Citation
Fischer, Carolyn, and Alan K. Fox. 2018. "How Trade Sensitive Are Energy-Intensive Sectors?" AEA Papers and Proceedings, 108: 130-35. DOI: 10.1257/pandp.20181088Additional Materials
JEL Classification
- F18 Trade and Environment
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O44 Environment and Growth
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q56 Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Q58 Environmental Economics: Government Policy