The Role of CETA on Carbon Dioxide, F-Gasses, Methane, and Nitrous Oxide

Qirjo, Dhimitri and Pascalau, Razvan and Krichevskiy, Dmitriy (2020): The Role of CETA on Carbon Dioxide, F-Gasses, Methane, and Nitrous Oxide.

Abstract

This study empirically investigates how the presence of CETA (Comprehensive Economic and Trade Agreement) may affect per capita emissions of four air pollutants. It follows closely the empirical work of (Qirjo et al., 2019), but it focuses in each category of GHGs. It finds statistically significant evidence suggesting that trade openness between the EU and Canada could help reduce per capita emissions of CO2, CH4, and N2O in a typical CETA member, respectively. In the case of CO2, the presence of CETA may help reduce per capita emissions in almost all CETA members. However, there is empirical evidence that suggests that per capita emissions of CH4 could move from the EU towards Canada due to the implementation of CETA. There is also empirical evidence implying that there could be a shift of emissions per capita of N2O from Canada towards 8 former EU members due to the implementation of CETA. There is mainly statistically insignificant evidence of a positive relationship between the trade intensity of each EU member and Canada and per capita emissions of HFCs/PFCs/SF6. Furthermore, the study reports unambiguous empirical evidence in support of the Pollution Haven Hypothesis originating from national population density variations (PHH2) for Canada, in the case of CH4. Moreover, there is also clear evidence consistent with the Pollution Haven Hypothesis due to national income differences (PHH1) for 8 former Communist EU members, in the cases of N2O and HFCs/PFCs/SF6.

• Item Type: MPRA Paper
• Language: English
• Keywords: Free Trade, Environmental Economics, CETA.
• Subjects: F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F53 - International Agreements and Observance ; International Organizations; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q27 - Issues in International Trade; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth

References

Antweiler, W., B. R. Copeland, and M. S. Taylor (2001, September). Is free trade good for the environment? American Economic Review 91(4), 877–908.

Cole, M. A. and R. J. Elliott (2003, November). Determining the trade–environment composition effect: The role of capital, labor, and environmental regulations. Journal of Environmental Economics and Management 46(3), 363–383.

Cole, M. A. and P. G. Fredriksson (2009, February). Institutionalized pollution havens. Ecological Economics 68, 1239–1256.

Davis, S. J. and K. Caldeira (2010, March). Consumption-based accounting of CO2 emissions. Proceedings of the National Academy of Sciences of the United States of America 107(12), 5687–5692.

Frankel, J. A. and A. K. Rose (2005, February). Is trade good or bad for the environment? Sorting out the causality. Review of Economics and Statistics 87(1), 85–91.

Jaffe, A. B., S. R. Peterson, P. R. Portney, and R. N. Stavins (1995, March). Environmental regulation and the competitiveness of US manufacturing: What does the evidence tell us? Journal of Economic Literature 33(1), 132–163.

Levinson, A. and M. S. Taylor (2008, February). Unmasking the pollution haven effect. International Economic Review 49(1), 223–254.

Pascalau, R. and D. Qirjo (2017a). The role of TTIP on the environment. MPRA Working Paper, No. 79652.

Pascalau, R. and D. Qirjo (2017b). TTIP and the environmental Kuznets curve. MPRA Working Paper, No. 80192.

Qirjo, D. and R. Christopherson (2016). Will TAFTA Be Good or Bad for the Environment?, pp. 179–206. In Vikash Ramiah and Greg N. Gregoriou (ed): Handbook of Environmental and Sustainable Finance. Waltham, MA, Academic Press, Elsevier.

Qirjo, D. and R. Pascalau (2019a). The role of TTIP on other than CO2 air pollutants. MPRA Working Paper, No. 95633.

Qirjo, D. and R. Pascalau (2019b, April). The role of TTIP on the environment. Southern Economic Journal 85(4), 1262–1285.

Qirjo, D., R. Pascalau, and D. Krichevkiy (2019). The role of CETA on air pollution. MPRA Working Paper, No. 95608.

UNFCCC (2019). United Nations Framework Convention on Climate Change Dataset. Available online at https://unfccc.int.