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GTAP Resources: Resource Display

GTAP Resource #6614

"Trade policy and the environmental impacts along global supply chains: an ex-post analysis"
by Fusacchia, Ilaria and Alessandro Antimiani


Abstract
The relationship between international trade and environmental outcomes has been, and remains, contentious. Linkages occur in several directions and both direct and indirect mechanisms are in place (Cappelli et al., 2021). Trade agreements could help to meet climate goals, for example, by removing tariffs and harmonizing standards on "clean" goods and services. However, tariffs could be lower on dirty than on clean industries, representing an obstacle towards greener trade (Shapiro, 2021). Nevertheless the relevance of this issue, relatively little attention is paid to the global trade architecture in climate policy discussions.
However, since production and trade are increasingly organized within Global Supply Chains (GSCs), assessing trade policy's effects is nowadays more complex than considering tariffs on gross trade. In other words, to evaluate the link between trade policy and environmental outcome, we need to approach the issue from a global supply chain perspective.
We use an updated version of the GTAP-RD model, featured with a module to account for energy-related CO2 emissions embedded in trade allocated along the GSCs and compare two states of the world, with the only difference being the presence of a free trade agreement (FTA) – i.e. the effects of the Agreement are isolated from any other factor that in reality also comes into play.


Resource Details (Export Citation) GTAP Keywords
Category: 2022 Conference Paper
Status: Not published
By/In: Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2022
Version:
Created: Fusacchia, I. (4/15/2022)
Updated: Fusacchia, I. (4/15/2022)
Visits: 464
- Dynamic modeling
- Model extension/development
- Climate impacts
- Trade and the environment


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