Impacts of Environmental Agreements on Bilateral Trade of Climate Industry

We investigated the effect of agreements related to climate change on bilateral trade, using the Poisson pseudo-maximum likelihood (PPML) estimator on a large dataset that requires computing high-dimensional fixed effects. This study develops the concordance between commodities based on harmonized s...

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Autores principales:	Sung Jin Kang, Sun Lee, Seon Ju Lee
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	climate change technology environmental agreements gravity model Poisson pseudo-maximum likelihood Technology T
Acceso en línea:	https://doaj.org/article/70e58880d34244cea7f7a94c6fe92785
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spelling	oai:doaj.org-article:70e58880d34244cea7f7a94c6fe927852021-11-11T16:01:35ZImpacts of Environmental Agreements on Bilateral Trade of Climate Industry10.3390/en142172771996-1073https://doaj.org/article/70e58880d34244cea7f7a94c6fe927852021-11-01T00:00:00Zhttps://www.mdpi.com/1996-1073/14/21/7277https://doaj.org/toc/1996-1073We investigated the effect of agreements related to climate change on bilateral trade, using the Poisson pseudo-maximum likelihood (PPML) estimator on a large dataset that requires computing high-dimensional fixed effects. This study develops the concordance between commodities based on harmonized systems (HS) and technologies defined by both international and cooperative patent classifications (IPC/CPC). Using the OECD ENV-TECH classification, covering 169 exporting countries and 179 importing countries worldwide from 1991 to 2019, we determined the relationship between HS commodities and IPC/CPC climate change technologies. The main findings show that, first, the Kyoto Protocol has increased international bilateral trade in the climate change industry, while the Montreal Protocol has led to the opposite effect. In addition, the impact of environmental stringency on international bilateral trade in climate-related industries was negative and significant, refuting the Porter Hypothesis. This result was consistent within the trade between the convention countries. Therefore, national and industrial perspectives are relative, and voluntary climate mitigation methods should be applied, considering the areas where carbon reduction is relatively difficult. In other words, the conventions and policies must shift to a global paradigm in environmental protection and a more inclusive approach, with recognition of diversity in governance types.Sung Jin KangSun LeeSeon Ju LeeMDPI AGarticleclimate changetechnologyenvironmental agreementsgravity modelPoisson pseudo-maximum likelihoodTechnologyTENEnergies, Vol 14, Iss 7277, p 7277 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	climate change technology environmental agreements gravity model Poisson pseudo-maximum likelihood Technology T
spellingShingle	climate change technology environmental agreements gravity model Poisson pseudo-maximum likelihood Technology T Sung Jin Kang Sun Lee Seon Ju Lee Impacts of Environmental Agreements on Bilateral Trade of Climate Industry
description	We investigated the effect of agreements related to climate change on bilateral trade, using the Poisson pseudo-maximum likelihood (PPML) estimator on a large dataset that requires computing high-dimensional fixed effects. This study develops the concordance between commodities based on harmonized systems (HS) and technologies defined by both international and cooperative patent classifications (IPC/CPC). Using the OECD ENV-TECH classification, covering 169 exporting countries and 179 importing countries worldwide from 1991 to 2019, we determined the relationship between HS commodities and IPC/CPC climate change technologies. The main findings show that, first, the Kyoto Protocol has increased international bilateral trade in the climate change industry, while the Montreal Protocol has led to the opposite effect. In addition, the impact of environmental stringency on international bilateral trade in climate-related industries was negative and significant, refuting the Porter Hypothesis. This result was consistent within the trade between the convention countries. Therefore, national and industrial perspectives are relative, and voluntary climate mitigation methods should be applied, considering the areas where carbon reduction is relatively difficult. In other words, the conventions and policies must shift to a global paradigm in environmental protection and a more inclusive approach, with recognition of diversity in governance types.
format	article
author	Sung Jin Kang Sun Lee Seon Ju Lee
author_facet	Sung Jin Kang Sun Lee Seon Ju Lee
author_sort	Sung Jin Kang
title	Impacts of Environmental Agreements on Bilateral Trade of Climate Industry
title_short	Impacts of Environmental Agreements on Bilateral Trade of Climate Industry
title_full	Impacts of Environmental Agreements on Bilateral Trade of Climate Industry
title_fullStr	Impacts of Environmental Agreements on Bilateral Trade of Climate Industry
title_full_unstemmed	Impacts of Environmental Agreements on Bilateral Trade of Climate Industry
title_sort	impacts of environmental agreements on bilateral trade of climate industry
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/70e58880d34244cea7f7a94c6fe92785
work_keys_str_mv	AT sungjinkang impactsofenvironmentalagreementsonbilateraltradeofclimateindustry AT sunlee impactsofenvironmentalagreementsonbilateraltradeofclimateindustry AT seonjulee impactsofenvironmentalagreementsonbilateraltradeofclimateindustry
_version_	1718432420810719232

Impacts of Environmental Agreements on Bilateral Trade of Climate Industry

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