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GTAP Resource #6842

"Comparing the environmental bias of trade policies"
by Antimiani, Alessandro, Ilaria Fusacchia and Luca Salvatici

The linkage between trade and CO2 emissions is becoming more and more relevant in the economic and environmental debate. The growing role of trade for low-income countries and the relevance of the global supply chain in domestic production open the floor also to the role of trade policies.
We will use an MRIO model, specifically the GTAP-MRIO model (, extended with the Value Added module. This allows us to shock tariffs on intermediates and map the value added in trade. Moreover, the model will allow the elasticities of substitution to differ depending on whether goods are imported as final goods for consumers or inputs for industries.
Our goal is to assess the overall stance of national trade policies with respect to carbon emissions. To this end, we first compute the level of emissions embedded in imports. Then we replace the existing tariffs with a uniform one keeping the level of emissions embedded in imports at the same level as in the baseline.
The computation of the uniform tariff equivalent in terms of emissions will allow comparing the trade policy impact for the countries included in our experiment. Moreover, product disaggregation will allow us to highlight the sectors driving the results.

Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Not published
Date: 2023
Created: Salvatici, L. (4/11/2023)
Updated: Batta, G. (5/7/2023)
Visits: 312
- Climate change policy
- Trade and the environment
- European Union

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