Foreign Demand, Developing Country Exports, and CO2 Emissions: Firm-Level Evidence from India

Autor: Geoffrey Barrows, Hélène Ollivier
Přispěvatelé: Centre de Recherche en Économie et Statistique (CREST), Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] (ENSAI)-École polytechnique (X)-École Nationale de la Statistique et de l'Administration Économique (ENSAE Paris)-Centre National de la Recherche Scientifique (CNRS), École polytechnique (X), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Centre de Recherche en Economie et Statistique [Bruz] (CREST), Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] (ENSAI), ANR-17-EURE-0001,PGSE,Ecole d'Economie de Paris(2017), ANR-10-LABX-9301,LABX,ANR-10-LABX-9301
Jazyk: angličtina
Rok vydání: 2020
Předmět:
Economics and Econometrics
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights
Developing country
Context (language use)
Development
7. Clean energy
Globalization
JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
0502 economics and business
Economics
Production (economics)
JEL: F - International Economics/F.F1 - Trade/F.F1.F18 - Trade and Environment
050207 economics
Leakage (economics)
050205 econometrics
Technological change
Trade and environment
JEL: F - International Economics/F.F1 - Trade/F.F1.F14 - Empirical Studies of Trade
05 social sciences
International economics
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Emission intensity
13. Climate action
Demand shock
8. Economic growth
Product mix
Zdroj: Journal of Development Economics
Journal of Development Economics, Elsevier, 2021, 149, pp.102587. ⟨10.1016/j.jdeveco.2020.102587⟩
ISSN: 0304-3878
Popis: International audience; With asymmetric climate policies, regulation in one country can be undercut by missions growth in another. Previous research finds evidence that regulation erodes the competitiveness of domestic firms and leads to higher imports, but increased imports need not imply increased emissions if domestic sales are jointly determined with export sales or if emission intensity of manufacturing adjusts endogenously to foreign demand. In this paper, we estimate for the first time how production and emissions of manufacturing firms in one country respond to foreign demand shocks in trading partner markets. Using a panel of large Indian manufacturers and an instrumental variable strategy, we find that foreign demand growth leads to higher exports, domestic sales, production, and CO2 emissions, and slightly lower emission intensity. The results imply that a representative exporter facing the average observed foreign demand growth over the period 1995-2011 would have increased CO2 emissions by 1.39% annually as a result of foreign demand growth, which translates into 6.69% total increase in CO2 emissions from Indian manufacturing over the period. Breaking down emission intensity reduction into component channels, we find some evidence of product-mix effects, but fail to reject the null of no change in technology. Back of the envelope calculations indicate that environmental regulation that doubles energy prices world-wide (except in India) would only increase CO2 emissions from India by 1.5%. Thus, while leakage fears are legitimate, the magnitude appears fairly small in the context of India.
Databáze: OpenAIRE
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