International Trade and Climate Change

The World Bank

Description

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.
This book is one of the first comprehensive attempts to look at the synergies between climate change and trade objectives from economic, legal, and institutional perspectives. It addresses an important policy question - how changes in trade policies and international cooperation on trade policies can help address global environmental spillovers, especially GHG emissions, and what the (potential) effects of (national) environmental policies that are aimed at global environmental problems might be for trade and investment. It explores opportunities for aligning development and energy policies in such a way that they could stimulate production, trade, and investment in cleaner technology options.

Sujets

• World Bank
• Environment

Informations

• Publié par: world-bank-publications
• Publié le: 15 octobre 2007
• Nombre de lectures: 48
• EAN13: 9780821372258
• Langue: English

Extrait

International
Trade and
Climate Change
Economic, Legal, and
Institutional Perspectives
ENVIRONMENT AND DE VEL OPMENTInternational Trade and
Climate ChangeENVIR ONMENT
AND
DE VEL OPMENT
A fundamental element of sustainable development is environmental sustain-
ability. Hence, this series was created in 2007 to cover current and emerging issues
in order to promote debate and broaden the understanding of environmental
challenges as integral to achieving equitable and sustained economic growth. The
series will draw on analysis and practical experience from across the World Bank
and from client countries. The manuscripts chosen for publication will be central
to the implementation of the World Bank’s Environment strategy, and relevant
to the development community, policy makers, and academia. In that spirit, forth-
coming volumes are expected to address environmental health, natural resources
management, strategic environmental assessment, policy instruments, and envi-
ronmental institutions.
Second volume in the series
Proverty and the Environment: Understanding Linkages at the Household LevelInternational
Trade and
Climate Change
Economic, Legal, and
Institutional Perspectives© 2008 The International Bank for Reconstruction and
Development / The World Bank
1818 H Street, NW
Washington, DC 20433
Telephone [phone]
Internet www.worldbank.org
E-mail feedback@w
All rights reserved.
1 2 3 4 :: 10 09 08 07
This volume is a product of the staff of the International Bank
for Reconstruction and Development / The World Bank. The
findings, interpretations, and conclusions expressed in this
volume do not necessarily reflect the views of the Executive
Directors of The World Bank or the governments they represent.
The World Bank does not guarantee the accuracy of the data
included in this work. The boundaries, colors, denominations,
and other information shown on any map in this work do not
imply any judgement on the part of The World Bank concerning
the legal status of any territory or the endorsement or acceptance
of such boundaries.
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The material in this publication is copyrighted. Copying and/or
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All other queries on rights and licenses, including subsidiary
rights, should be addressed to the Office of the Publisher, The
World Bank, 1818 H Street NW, Washington, DC 20433, USA;
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ISBN: 978-0-8213-7225-8
e-ISBN: 978-0-8213-7226-5
DOI: 10.1596/ 978-0-8213-7225-8
Design: Auras Design
Cover photos:
Windmills: © Paul Giamou/Getty Images
Child in floodwater: © Gideon Mendel/Corbis
Library of Congress Cataloging-in-Publication Data has been
applied for.C ONTENT S
ix Acknowledgments
xi Abbreviations
CHAP TER 1
1 Introduction and Overview
4 Technology Options to Stabilize Greenhouse Gas Emissions
7 The Debate on Trade and the Environment Revisited
8 Focus and Results of This Study
10 Findings and Recommendations
16 Notes
CHAP TER 2
18 Climate Change Policies and International Trade:
Challenges and Opportunities
19 Do Climate Change Measures Affect Competitiveness?
29 In Search of Carbon Leakage: Examining the Relocation of
Energy-Intensive Industries to Developing Countries
35 Trade Measures
39 WTO and Kyoto Protocol: Exploring Synergies for Advancing Both Trade
and Climate Agendas
41 Key Findings from Chapter 2
41 Notes
CHAP TER 3
45 Beyond Kyoto: Striving for a Sustainable Energy Future in
Developing Countries
46 Global Emissions Scenarios through 2030
47 Clean Energy for the Future
52 Liberalization of Trade in Clean Energy Technologies
54 Clean Coal Technology
59 Wind Power Tecy
62 Solar Photovoltaics (PV) Technology
68 Energy-Efficient Lighting
70 Conclusions
72 Key Findings from Chapter 3
72 Notes
vvi CONTENTS
CHAP TER 4
73 Opportunities for Win-Win-Win: Liberalizing Trade in
Environmental Goods and Services
74 Complexity Surrounding Environmental Goods (EG) Discussions
78 Linking of Current EG Discussions to Climate Change Mitigation
80 Options for Negotiating a Climate-Friendly Package within the WTO
Framework
82 Lessons from Current EG Discussions for Negotiating a Climate-Friendly
Package
87 The Way Forward on a Possible Agreement on Climate Change Mitigation
Products
95 Key Findings from Chapter 4
95 Notes
CHAP TER 5
97 Conclusions and Recommendations
97 Findings
99 Recommendations
Appendixes
105 APPENDIX 1. Kyoto Protocol: Countries Included in Annex B to the Kyoto
Protocol and Their Emissions Targets
107 APPENDIX 2. Measures to Combat Climate Change
107 Regulatory Measures
109 Fiscal Measures
111 Market-Based Instruments
113 Voluntary Agreements (VAs)
114 Notes
117 APPENDIX 3. Model Specification and Results
123 APPENDIX 4. Industry-Specific Effects of Carbon Taxes and Energy
Efficiency Standards
127 APPENDIX 5. Partial Equilibrium Trade Policy Simulation Model
129 APPENDIX 6. Maximum and Applied Tariff Rates on Select Climate-
Friendly Technologies
133 Bibliography
139 Index
Boxes
2 1.1 The Kyoto Protocol
6 1.2 Summary List of Technologies Considered as “Wedges” for Climate
Change Mitigation
9 1.3 Environmental Aspects of Bilateral and Multilateral Trade Agreements
35 2.1 Globalization of the Chemical Industry
48 3.1 Approaches to Employing Technology Investments in Developing
CountriesCONTENTS vii
51 3.2 Regional and Country-Specific HS Nomenclature
55 3.3 Clean Coal Technologies
60 3.4 A Case of Other Barriers to Technology Diffusion: The China Study
66 3.5 Cambodia: Additional Duties Leading to Lower Diffusion
67 3.6 Lessons Learned in Designing Financial Incentives for Renewable Energy
69 3.7 Bundling Policies to Promote Energy Savings: The Case of South
Africa
75 4.1 Main Issues in Liberalization of Environmental Goods and Services
88 4.2 Trade, Environment, and Biofuels
Figures
4 1.1 CO Emissions from Energy Use, 2002–302
31 2.1 World Crude Oil Price, 1990–2005
32 2.2 Import-Export Ratio of Energy-Intensive Products in High-Income
OECD Countries and Low- and Middle-Income Economies
32 2.3 Import-Export Ratio of Energy-Intensive Products in the United
States and EU
33 2.4 Import-Export Ratio of Energy-Intensive Products in Low- and
Middle-Income East Asian and Pacific Economies and China
33 2.5 Import-Export Ratio of Energy-Intensive Prw- and
Middle-Income Economies in Various Regions
46 3.1 CO Emissions from Energy Use, 2002–302
54 3.2 Energy Production in China and India, 2004
57 3.3 Clean Coal Technology Import-Export Ratio in High-Income versus
Low- and Middle-Income Countries
62 3.4 Wind Power Generation Import-Exporigh-Income versus
Low- and Middle-Income Countries
64 3.5 Solar Power Generation Import-Export Ratio in High-Income versus
Low- and Middle-Income Countries
69 3.6 Import-Export Ratio of Fluorescent Lamps in High- and
Low-Income Countries
88 4.1 Traditional Environmental Goods versus Environmentally
Preferable Products
94 4.2 Considerations for a Win-Win-Win Package on Trade and
Climate Change
Tables
21 2.1 Existing Measures to Combat Climate Change in
Annex I Countries
23 2.2 Status of Carbon Tax Regimes in Selected OECD Countries
25 2.3 Existing Energy Efficiency Standards for Select Products in OECD
Countries
26 2.4 Predicted Competitiveness Impacts of Carbon Taxes and Energy
Efficiency Standards
28 2.5 Impact of Carbon Taxes and Energy Efficiency Standards on Export
Competitiveness viii CONTENTS
39 2.6 Impact of an EU “Kyoto Tariff” on U.S. Exports
47 3.1 Potential Contribution to CO Increase, 2002–302
53 3.2 Change in Trade Volumes in High-GHG-Emitting Developing
Countries from Liberalizing Clean Energy Technologies
57 3.3 Top 10 Trading Countries for IGCC (Clean Coal) Technology
Components
58 3.4 Applied Average Tariffs and NTBs for IGCC (Clean Coal)
Technologies in the 18 High-GHG-Emitting Developing
Countries
61 3.5 Top 10 Trading Countries in Wind Energy
63 3.6 Applied Average Tariffs and NTBs for Wind Technology in 18 High-
GHG-Emitting Developing Countries
64 3.7 Top 10 Trading Countries in Solar Photovoltaics
65 3.8 Applied Tariffs and NTBs for Solar Photovoltaic Technology in 18
High-GHG-Emitting Developing Countries
68 3.9 Top 10 Trading Countries for Fluorescent Lamps
69 3.10 Average Applied Tariffs and NTBs on Fluorescent Lamps in 18 High-
GHG-Emitting Developing Countries
80 4.1 Trade in Climate-Friendly Technologies of Both High-Income and