International Trade and Climate Change: Economic, Legal, and Institutional Perspectives

✍ Scribed by World Bank, World Bank

• Publisher: World Bank Publications
• Year: 2007
• Tongue: English
• Leaves: 162
• Series: Environment and Development Series
• Category: Library

✦ Synopsis

Climate change remains a global challenge requiring international collaborative action. Another area where countries have successfully committed to a long-term multilateral resolution is the liberalization of international trade. Integration into the world economy has proven a powerful means for countries to promote economic growth, development, and poverty reduction. The broad objectives of the betterment of current and future human welfare are shared by both global trade and climate regimes. Yet both climate and trade agendas have evolved largely independently through the years, despite their mutually supporting objectives. Since global emission goals and global trade objectives are shared policy objectives of most countries, and nearly all of the World Bank's clients, it makes sense to consider the two sets of objectives together.

✦ Table of Contents

CONTENTS......Page 7
Acknowledgments......Page 11
Abbreviations......Page 13
CHAPTER 1 Introduction and Overview......Page 15
1.1 CO2 Emissions from Energy Use, 2002–30......Page 18
The Debate on Trade and the Environment Revisited......Page 21
Focus and Results of This Study......Page 22
Findings and Recommendations......Page 24
Notes......Page 30
Do Climate Change Measures Affect Competitiveness?......Page 33
In Search of Carbon Leakage: Examining the Relocation of Energy-Intensive Industries to Developing Countries......Page 43
2.1 Globalization of the Chemical Industry......Page 49
2.6 Impact of an EU “Kyoto Tariff” on U.S. Exports......Page 53
Notes......Page 55
CHAPTER 3 Beyond Kyoto: Striving for a Sustainable Energy Future in Developing Countries......Page 59
3.1 CO2 Emissions from Energy Use, 2002–30......Page 60
3.1 Potential Contribution to CO2 Increase, 2002–30......Page 61
Liberalization of Trade in Clean Energy Technologies......Page 66
3.2 Energy Production in China and India, 2004......Page 68
Wind Power Technology......Page 73
3.4 Wind Power Generation Import-Export Ratio in High-Income versus Low- and Middle-Income Countries......Page 76
3.9 Top 10 Trading Countries for Fluorescent Lamps......Page 82
Conclusions......Page 84
Notes......Page 86
CHAPTER 4 Opportunities for Win-Win-Win: Liberalizing Trade in Environmental Goods and Services......Page 87
Complexity Surrounding Environmental Goods (EG) Discussions......Page 88
Linking of Current EG Discussions to Climate Change Mitigation......Page 92
4.1 Trade in Climate-Friendly Technologies of Both High-Income and Low- and Middle-Income WTO members......Page 94
Lessons from Current EG Discussions for Negotiating a Climate-Friendly Package......Page 96
The Way Forward on a Possible Agreement on Climate Change Mitigation Products......Page 101
Notes......Page 109
Findings......Page 111
Recommendations......Page 113
APPENDIX 1. Kyoto Protocol: Countries Included in Annex B to the Kyoto Protocol and Their Emissions Targets......Page 119
Regulatory Measures......Page 121
Fiscal Measures......Page 123
Market-Based Instruments......Page 125
Voluntary Agreements (VAs)......Page 127
Notes......Page 128
APPENDIX 3. Model Specification and Results......Page 131
APPENDIX 4. Industry-Specific Effects of Carbon Taxes and Energy Efficiency Standards......Page 137
APPENDIX 5. Partial Equilibrium Trade Policy Simulation Model......Page 141
APPENDIX 6. Maximum and Applied Tariff Rates on Select Climate-Friendly Technologies......Page 143
Bibliography......Page 147
Index......Page 153
1.1 The Kyoto Protocol......Page 16
1.2 Summary List of Technologies Considered as “Wedges” for Climate Change Mitigation......Page 20
1.3 Environmental Aspects of Bilateral and Multilateral Trade Agreements......Page 23
3.1 Approaches to Employing Technology Investments in Developing Countries......Page 62
3.2 Regional and Country-Specific HS Nomenclature......Page 65
3.3 Clean Coal Technologies......Page 69
3.4 A Case of Other Barriers to Technology Diffusion: The China Study......Page 74
3.5 Cambodia: Additional Duties Leading to Lower Diffusion......Page 80
3.6 Lessons Learned in Designing Financial Incentives for Renewable Energy......Page 81
3.7 Bundling Policies to Promote Energy Savings: The Case of South Africa......Page 85
4.1 Main Issues in Liberalization of Environmental Goods and Services......Page 89
4.2 Trade, Environment, and Biofuels......Page 102
2.1 World Crude Oil Price, 1990–2005......Page 45
2.3 Import-Export Ratio of Energy-Intensive Products in the United States and EU......Page 46
2.5 Import-Export Ratio of Energy-Intensive Products in Low- and Middle-Income Economies in Various Regions......Page 47
3.3 Top 10 Trading Countries for IGCC (Clean Coal) Technology Components......Page 71
3.7 Top 10 Trading Countries in Solar Photovoltaics......Page 78
3.10 Average Applied Tariffs and NTBs on Fluorescent Lamps in 18 High- GHG-Emitting Developing Countries......Page 83
4.1 Traditional Environmental Goods versus Environmentally Preferable Products......Page 90
4.2 Considerations for a Win-Win-Win Package on Trade and Climate Change......Page 108
2.1 Existing Measures to Combat Climate Change in Annex I Countries......Page 35
2.2 Status of Carbon Tax Regimes in Selected OECD Countries......Page 37
2.3 Existing Energy Efficiency Standards for Select Products in OECD Countries......Page 39
2.4 Predicted Competitiveness Impacts of Carbon Taxes and Energy Efficiency Standards......Page 40
2.5 Impact of Carbon Taxes and Energy Efficiency Standards on Export Competitiveness......Page 42
3.2 Change in Trade Volumes in High-GHG-Emitting Developing Countries from Liberalizing Clean Energy Technologies......Page 67
3.4 Applied Average Tariffs and NTBs for IGCC (Clean Coal) Technologies in the 18 High-GHG-Emitting Developing Countries......Page 72
3.5 Top 10 Trading Countries in Wind Energy......Page 75
3.6 Applied Average Tariffs and NTBs for Wind Technology in 18 High- GHG-Emitting Developing Countries......Page 77
3.8 Applied Tariffs and NTBs for Solar Photovoltaic Technology in 18 High-GHG-Emitting Developing Countries......Page 79
4.2 Fuel Subsidies in OECD and non-OECD Countries......Page 98
3A Results from the Competitiveness Analysis: Effects of Climate Change Measures on all Relevant Industries......Page 132
3B Results from the Competitiveness Analysis: Effects of Climate Change Measures on Energy-Intensive Industries......Page 133
3C Results from the Competitiveness Analysis: Effects of Climate Change Measures on Industries Subject to Higher Efficiency Standards......Page 134
4B Impact of Carbon Taxes and Energy Efficiency Standards on Export Competitiveness (Industries Subject to Higher Energy Efficiency Standards)......Page 138