The impact of climate legislation on trade-related carbon emissions, 1997–2017

Eskander, Shaikh ORCID: 0000-0002-3325-5486 and Fankhauser, Samuel ORCID: 0000-0003-2100-7888 (2021) The impact of climate legislation on trade-related carbon emissions, 1997–2017. Grantham Research Institute on Climate Change and the Environment Working Paper, 367. Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, London, UK.

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Abstract

We present empirical evidence of the international emissions impact from climate change legislation in 98 countries between 1997 and 2017, using data from Climate Change Laws of the World. Unlike traditional measures of carbon leakage, we focus on net carbon imports, that is, the difference between consumption and production emissions. Using different estimation techniques, we estimate the impact on carbon intensity of two legislation variables, recent legislation (passed in the last 3 years) and older legislation (passed more than 3 years ago). We find that recent legislation reduces production emissions more than consumption emissions, while older laws have a bigger impact on consumption emissions. The combined effect of these changes on net carbon imports is very small. Overall, we find no evidence that domestic climate legislation has increased international carbon leakage over the past two decades. Indeed, in high-income countries the longrun leakage rate may even be negative.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/granthaminstitute/publicatio...
Additional Information:	© 2021 The Authors
Divisions:	Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences K Law > K Law (General) H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F18 - Trade and Environment K - Law and Economics > K3 - Other Substantive Areas of Law > K32 - Environmental, Health, and Safety Law Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
Date Deposited:	29 Jul 2021 23:07
Last Modified:	11 Dec 2024 19:38
URI:	http://eprints.lse.ac.uk/id/eprint/111509

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