Date of Publication

9-18-2021

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Arts Major in Economics

College

School of Economics

Department/Unit

Economics

Honor/Award

Outstanding Undergraduate Thesis Award

Thesis Advisor

Krista Danielle Yu
Albert Lamberte
Maria Zunally Rapada
Brian Irvyn Chan

Defense Panel Chair

Krista Danielle Yu

Defense Panel Member

Albert Lamberte
Maria Zunally Rapada
Brian Irvyn Chan

Abstract/Summary

The environmental impact of international trade is a concerning issue in the fight against climate change. Consumption-based accounting of greenhouse gas emissions has shown that nearly a quarter of all CO2 emissions are associated with the production of internationally traded goods. As such, trade liberalization—combined with globally fragmented environmental policies—is often associated with emissions leakages and the formation of pollution havens, as trade allows countries to outsource emissions-intensive production to countries with weaker environmental regulations. Literature on this subject has therefore suggested that a globally coordinated policy response is necessary to mitigate the impact of trade on climate change. This study aims to contribute to the existing literature by identifying the type of unilateral or multilateral actions countries can take to mitigate the impact of embodied emissions associated with bilateral trade. Through a gravity model estimating the impact of regulation, domestic carbon intensities, and several other gravity variables, this study is able to provide novel conclusions in the context of the existing literature. Particularly, a unilateral strengthening of environmental regulation by the importing country can contribute climate change mitigation in the best case, and has a statistically insignificant effect in the worst case. This study also finds that multilateral coordination in technological diffusion, and trading agreements can also aid in mitigation efforts.

Abstract Format

html

Language

English

Format

Electronic

Physical Description

v, 74 leaves

Keywords

International trade—Environmental aspects; Carbon dioxide mitigation

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Embargo Period

9-17-2023

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