TD NEREUS 03-2015
Vinicius A. Vale, Fernando S. Perobelli and Ariaster B. Chimeli
This paper investigates the mechanics of international trade and CO2 emissions in two blocs of countries (“North” and “South”) by analyzing data from the World Input-Output Database. We use and adapt the Miyazawa technique to estimate the linkages between international trade and the environment at a global scale, a contribution that to our best knowledge has not yet appeared in the literature. Our results suggest that both the North and the South have become less pollution intensive (technique effect) over the years. Interestingly and in contrast to much of the literature, we also find support to the hypothesis that the South has specialized in relatively more pollution intensive activities (composition effect).