Article by Igor Makarov and Sedat Alataş in "Applied Energy"
Igor Makarov, Laboratory's Head, and Sedat Alataş, Research Fellow at Aydın Adnan Menderes University, have published an article "Production- and consumption-based emissions in carbon exporters and importers: A large panel data analysis for the EKC hypothesis" in "Applied Energy".
The authors comparatively investigated the Environmental Kuznets Curve (EKC) pattern based on both PBE and CBE.
The main conclusions of the paper are:
1. We should recognize that EKC doesn't work for the whole globe. It describes relatively well the economy-emissions nexus only for the group of mostly developed economies that are net importers of energy-intensive goods. Further economic growth in these economies may be accompanied by a reduction in per capita production-based emissions. In the beginning, the reduction of PBEPC is compensated by the rise of imports of CO2 embedded in trade and, consequently, the rise of CBEPC. However, with higher levels of income, even per capita consumption-based emissions start to decrease, which means that these countries may grow with decreasing (albeit still existing) negative effects on climate on a global scale.
2. Beyond the relatively small number of Club 1 countries (which cover altogether just 7% of global emissions), economic growth and the rise of emissions are intertwined. Notably, in Club 3, consisting mostly of large emerging economies and hydrocarbon exporters, the rise of per capita emissions is an important side effect of the development model, linking the rise of living standards with the specialization in energy-intensive exports to the developed world.
3. International trade plays an important role in the economy-emissions nexus. Globalization, which has reached an unprecedented level during our period of analysis, has created such a system of international division of labor in which some countries (primarily large emerging economies) specialized in producing carbon-intensive goods for exports to the rest of the world. This specialization is even strengthening with the rising stringency of climate policies in net CO2 importing countries, which provokes carbon leakage.
The full text of the article is available here.
The main conclusions of the paper are:
1. We should recognize that EKC doesn't work for the whole globe. It describes relatively well the economy-emissions nexus only for the group of mostly developed economies that are net importers of energy-intensive goods. Further economic growth in these economies may be accompanied by a reduction in per capita production-based emissions. In the beginning, the reduction of PBEPC is compensated by the rise of imports of CO2 embedded in trade and, consequently, the rise of CBEPC. However, with higher levels of income, even per capita consumption-based emissions start to decrease, which means that these countries may grow with decreasing (albeit still existing) negative effects on climate on a global scale.
2. Beyond the relatively small number of Club 1 countries (which cover altogether just 7% of global emissions), economic growth and the rise of emissions are intertwined. Notably, in Club 3, consisting mostly of large emerging economies and hydrocarbon exporters, the rise of per capita emissions is an important side effect of the development model, linking the rise of living standards with the specialization in energy-intensive exports to the developed world.
3. International trade plays an important role in the economy-emissions nexus. Globalization, which has reached an unprecedented level during our period of analysis, has created such a system of international division of labor in which some countries (primarily large emerging economies) specialized in producing carbon-intensive goods for exports to the rest of the world. This specialization is even strengthening with the rising stringency of climate policies in net CO2 importing countries, which provokes carbon leakage.
The full text of the article is available here.
Date
1 April
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