1. Nine facts about globalization and the environment A review paper by

1. Nine facts about globalization and the environment

A review paper by Copeland et al (2022) presents nine stylized facts that link international trade and the environment using the World Input Output database (WIOD). Some of these are quite striking (e.g., 7 and 8). These are:

1. Dirty industries are more exposed to trade.

2. Different types of pollution are correlated.

3. Dirty industries are more upstream.

4. More productive plants are cleaner.

5. Pollution emission rates differ substantially across countries.

6. Most global emission growth comes from developing countries.

7. International trade accounts for a fourth to a third of global pollution emissions.

8. Rich countries are increasingly outsourcing pollution.

9. Technique accounts for a larger share of change in emissions than composition.

In this project you will work to replicate and update part or all the analysis in Copeland et al (2022). The objective of this project is to first ensure that the study is replicable, second to see if the results are robust to the use of a different dataset, and third if the results change with a more up-to-date dataset. The WIOD dataset only covers until 2014 and has big geographical gaps especially in Africa and south America.

Initial readings

Copeland, Brian R., Joseph S. Shapiro, and M. Scott Taylor. 2022. ‘Chapter 2 – Globalization and the Environment.’ In Handbook of International Economics, Handbook of International Economics: International Trade, Volume 5, eds. Gita Gopinath, Elhanan Helpman, and Kenneth Rogoff. Elsevier, 61–146. DOI: 10.1016/bs.hesint.2022.02.002

Relevant datasets

World Input Output database https://www.rug.nl/ggdc/valuechain/wiod/?lang=en

FIGARO input output tables https://ec.europa.eu/eurostat/web/esa-supply-use-input-tables/database

EORA input output tables https://worldmrio.com/