Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade
This paper introduces a new concept of comparative carbon advantage as a potential climate mitigation tool. According to the concept, welfare gains in terms of reduced global CO<sub>2</sub> emissions can be achieved by exploiting cross-country sectoral differences in carbon intensity and...
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-07-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/13/14/3613 |
| _version_ | 1827713232152821760 |
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| author | Hana Nielsen Astrid Kander |
| author_facet | Hana Nielsen Astrid Kander |
| author_sort | Hana Nielsen |
| collection | DOAJ |
| description | This paper introduces a new concept of comparative carbon advantage as a potential climate mitigation tool. According to the concept, welfare gains in terms of reduced global CO<sub>2</sub> emissions can be achieved by exploiting cross-country sectoral differences in carbon intensity and decarbonized electricity system. The paper empirically tests the concept by utilizing annual data of Sweden between 1995 and 2008. Overall, the results show that Sweden contributed nearly 590 million tons of potential CO<sub>2</sub> emissions savings through its exports by having an efficient and low-carbon production and electricity system. This total amount of 590 million tons of CO<sub>2</sub> emissions relates to the total savings made if the same amount and composition of Swedish exports was produced using the world average technology. Furthermore, the contribution of Sweden’s low carbon electricity generation was over 34% of the total savings, of which some 20% were direct exports of electricity and 80% was electricity embodied in exported products. This research provides a critical understanding of the impact of efficient production and low carbon electricity in generating relative comparative carbon advantage—a policy relevant aspect for the increasingly globalized, and carbon-constrained, world. |
| first_indexed | 2024-03-10T18:30:08Z |
| format | Article |
| id | doaj.art-efcaa186791b405ba230cbfb71cffc48 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T18:30:08Z |
| publishDate | 2020-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-efcaa186791b405ba230cbfb71cffc482023-11-20T06:42:20ZengMDPI AGEnergies1996-10732020-07-011314361310.3390/en13143613Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish TradeHana Nielsen0Astrid Kander1Department of Economic History, Lund University, 223 63 Lund, SwedenDepartment of Economic History, Lund University, 223 63 Lund, SwedenThis paper introduces a new concept of comparative carbon advantage as a potential climate mitigation tool. According to the concept, welfare gains in terms of reduced global CO<sub>2</sub> emissions can be achieved by exploiting cross-country sectoral differences in carbon intensity and decarbonized electricity system. The paper empirically tests the concept by utilizing annual data of Sweden between 1995 and 2008. Overall, the results show that Sweden contributed nearly 590 million tons of potential CO<sub>2</sub> emissions savings through its exports by having an efficient and low-carbon production and electricity system. This total amount of 590 million tons of CO<sub>2</sub> emissions relates to the total savings made if the same amount and composition of Swedish exports was produced using the world average technology. Furthermore, the contribution of Sweden’s low carbon electricity generation was over 34% of the total savings, of which some 20% were direct exports of electricity and 80% was electricity embodied in exported products. This research provides a critical understanding of the impact of efficient production and low carbon electricity in generating relative comparative carbon advantage—a policy relevant aspect for the increasingly globalized, and carbon-constrained, world.https://www.mdpi.com/1996-1073/13/14/3613foreign tradecomparative carbon advantagecarbon emissions |
| spellingShingle | Hana Nielsen Astrid Kander Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade Energies foreign trade comparative carbon advantage carbon emissions |
| title | Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade |
| title_full | Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade |
| title_fullStr | Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade |
| title_full_unstemmed | Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade |
| title_short | Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade |
| title_sort | trade in the carbon constrained future exploiting the comparative carbon advantage of swedish trade |
| topic | foreign trade comparative carbon advantage carbon emissions |
| url | https://www.mdpi.com/1996-1073/13/14/3613 |
| work_keys_str_mv | AT hananielsen tradeinthecarbonconstrainedfutureexploitingthecomparativecarbonadvantageofswedishtrade AT astridkander tradeinthecarbonconstrainedfutureexploitingthecomparativecarbonadvantageofswedishtrade |