Arbeitspapier
Carbon policy and the structure of global trade
Alternative perspectives on the structure of international trade have important implications for the evaluation of climate policy. In this paper we assess climate policy in the context of three important alternative trade formulations. First is a Heckscher-Ohlin model based on trade in homogeneous products, which establishes the traditional neoclassical view on comparative advantage. Second is an Armington model based on regionally differentiated goods, which constitutes a popular specification for numerical simulations of trade policy. Third is a Melitz model based on monopolistic-competition and firm heterogeneity. This heterogeneous-firms framework is adopted in many contemporary theoretic and empirical investigations in international trade. As we show in this paper, the three alternative trade formulations have important implications for the assessment of climate policy with respect to competitive effects for energy-intensive production (and hence carbon leakage) as well as the transmission of policy burdens across countries.
- Language
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Englisch
- Bibliographic citation
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Series: Oldenburg Discussion Papers in Economics ; No. V-383-15
- Classification
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Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade and Environment
Climate; Natural Disasters and Their Management; Global Warming
Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Subject
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heterogeneous firms
carbon leakage
competitiveness
- Event
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Geistige Schöpfung
- (who)
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Balistreri, Edward J.
Böhringer, Christoph
Rutherford, Thomas F.
- Event
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Veröffentlichung
- (who)
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University of Oldenburg, Department of Economics
- (where)
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Oldenburg
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Balistreri, Edward J.
- Böhringer, Christoph
- Rutherford, Thomas F.
- University of Oldenburg, Department of Economics
Time of origin
- 2015
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