Citation

Discussion Paper Details

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Title: Trade, Transportation and the Environment

Author(s): Rikard Forslid

Publication Date: December 2019

Keyword(s): Emissions, Trade and Transportation

Programme Area(s): International Trade and Regional Economics

Abstract: This paper analyzes the environmental impact of emissions related to trade and trans- portation. It is shown that transportation may in principle lower global emissions if the production sector is dirtier than the transport sector. The measure of a sector's dirtiness is related to the emissions taxes and the abatement efficiency within that sector. It is shown that a firm's abatement efficiency can be calculated from the emission-to-cost ratio times the emissions tax. Using Swedish data to rank 5-digit industries in terms of their dirtiness reveals that several production sectors have a higher dirtiness index than transportation does.

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Bibliographic Reference

Forslid, R. 2019. 'Trade, Transportation and the Environment'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14228