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Reconciling Trade and Climate Policies

Author

Listed:
  • Nicole A. MATHYS

    (Swiss Federal Office of Energy (SFOE))

  • Jaime DE MELO

    (Ferdi)

Abstract
The outcome of the 15th conference of the Parties to the UNFCCC in Copenhagen showed a shift from a top-down approach with a collective target favoring environmental objectives to a bottom-up accord favoring political feasibility. There is no meaningful binding agreement in sight, also because the global climate regime and the global trade policy regime appear to be on a collision course. Following a review of the challenges ahead, the paper argues that trade will have a second-order contribution to world-wide CO2 emissions. Evidence shows increasing carbon transfers through trade, but the magnitude of carbon leakage effects may be less than feared in some circles.

Suggested Citation

  • Nicole A. MATHYS & Jaime DE MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers P37, FERDI.
    • Handle: RePEc:fdi:wpaper:503
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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

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