Trade and Climate: Towards Reconciliation

Article dans une revue: To limit greenhouse-gas emissions, is it necessary to restrict international trade? By dissociating where products are produced from where they are consumed, international trade contributes significantly to greenhousegas emissions worldwide, especially when goods are transported. It also displaces the location of emissions: the consumption-induced carbon footprint of OECD countries is higher than their level of emissions. Large emerging countries find themselves in the opposite case. However, halting international trade would be particularly ineffective to reduce GHG emissions. According to oursimulations, raising average import tariffs to 17% (as opposed to current 5%, except for agricultural products) and accepting a fall in aggregate production of 1.8% would only lead to 3.5% GHG emission reduction by 2030. We confirm that a uniform and moderate import tariff imposed by a “club” of countries adopting ambitious and binding policies to fight climate change, against all imports from countries outside of the club, would be effective.

Auteur(s)

Dominique Bureau, Lionel Fontagné, Katheline Schubert

Revue
  • Notes du conseil d’analyse économique
Date de publication
  • 2017
Mots-clés JEL
F1 Q5
Mots-clés
  • International trade
  • International transport
  • Greenhouse gas emissions
Pages
  • 12 p.
Version
  • 1