Department of Agricultural and Resource Economics
Climate change and balance of trade
- Author(s): Hochman, Gal
- Zilberman, David
- et al.
In the absence of a global climate agreement, countries employ local policies to curb pollution and introduce clean energy. These policies limit domestic consumption of a traded energy source but increase exports thus improving a country’s energy balance and its balance of trade. While focusing on US energy policy, we show this phenomenon for both petroleum products and for coal.