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GTAP Resource #1318

"The Effects of the Proposed FTAA on Global Carbon Emissions: A General Equilibrium Analysis "
by Adkins, Liwayway and Richard Garbaccio


Abstract
This paper uses a computable general equilibrium (CGE) model of the world economy to simulate trade liberalization under the proposed Free Trade Area of the Americas (FTAA) and analyze the effects on global CO2 emissions. The case of worldwide trade liberalization is also simulated for comparison. In order to disentangle the forces driving the change in emissions, a decomposition procedure is applied in which changes in each country’s emissions are separated into three components: carbon-intensity, energy-intensity, and scale effects. The results of this study indicate that formation of the FTAA is likely to have little effect on CO2 emissions in the region or in the world as a whole. Worldwide trade liberalization, on the other hand, may bring about a significant rise in global emissions. Under both liberalization scenarios, there are some countries for which the effects on CO2 emissions are large, sometimes disproportionately so, given that they are accompanied by only modest changes in GDP.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
By/In: Presented at the Second World Congress of Environmental and Resource Economists, Monterey, CA, June
Date: 2002
Version:
Created: Adkins, L. (5/28/2003)
Updated: Bacou, M. (5/30/2003)
Visits: 2,427
- Climate change policy


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