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GTAP Resource #6955

"The Environmental Effects of the EU-MERCOSUR FTA in induced GHG emissions from LUCC and energy sectors"
by Mercado Córdova, Jesús Alberto and Yoonmo Koo


Abstract
The European Union (EU) and the Southern Common Market (MERCOSUR) reached an Association Agreement (AA) in June 2019 that aims to eliminate trade barriers and increase economic cooperation. While the deal has been greeted as a positive step for international trade, concerns have been raised about its potential environmental impacts, particularly with regards to GHG emissions from land use change (LULCC) and deforestation. This paper aims to explore the potential environmental impacts of the EU-MERCOSUR trade deal focusing on GHG emissions, by employing a two-step methodology. First the implementation Computable General Equilibrium (CGE) model, which uses the GTAP 10 LULC database to explore different trade policy scenarios. Second, GHG emissions are calculated using the GTAP’s emission factors for CO2 and Non-CO2 emissions data bases, and CO2 emissions from LULCC using GTAP EF model and matrices of land use change derived from the simulation results. The study finds that in the advanced scenario, which assumes a more extensive trade liberalization, global GHG emissions could rise by 0.31%. The increase is mainly due to the contribution of LULCC emissions, which account for 92% of the total increase. The study highlights the need for careful consideration of the potential environmental impacts of trade agreements, by comprehensively accounting LULCCand energy emissions.


Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version: .
Created: Mercado Córdova, J. (4/14/2023)
Updated: Mercado Córdova, J. (12/3/2023)
Visits: 284
- Calibration and parameter estimation
- Climate impacts
- Land use
- GTAP Data Base and extensions
- Non-Tariff barriers
- European Union
- South America


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  File format GTAP Resource 6955  (1.1 MB)   Replicated: 0 time(s)
  File format GTAP Resource 6955 Presentation  (1.9 MB)   Replicated: 0 time(s)


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Comments (1 posted)
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Posted by: Mercado Córdova, Jesús Alberto   6/5/2023 5:31:00 PM