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Trade in 'virtual carbon' : empirical results and implications for policy
 
Author:Atkinson, Giles; Hamilton, Kirk; Ruta, Giovanni; Van Der Mensbrugghe, Dominique; Collection Title:Policy Research working paper ; no. WPS 5194
Country:World; Date Stored:2010/01/27
Document Date:2010/01/01Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Environment and Energy Efficiency; Climate Change Mitigation and Green House Gases; Climate Change Economics; Economic Theory & ResearchLanguage:English
Major Sector:Energy and mining; Agriculture, fishing, and forestry; Water, sanitation and flood protectionRel. Proj ID:1W-Research Papers From K Hamilton Wdr2010 Background Papers -- -- P118749;
Region:The World RegionReport Number:WPS5194
Sub Sectors:General agriculture, fishing and forestry sector; General water, sanitation and flood protection sector; General energy sectorVolume No:1 of 1

Summary: The fact that developing countries do not have carbon emission caps under the Kyoto Protocol has led to the current interest in high-income countries in border taxes on the "virtual" carbon content of imports. The authors use Global Trade Analysis Project data and input-output analysis to estimate the flows of virtual carbon implicit in domestic production technologies and the pattern of international trade. The results present striking evidence on the wide variation in the carbon-intensiveness of trade across countries, with major developing countries being large net exporters of virtual carbon. The analysis suggests that tax rates of $50 per ton of virtual carbon could lead to very substantial effective tariff rates on the exports of the most carbon-intensive developing nations.

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