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Climate change and balance of trade

  • Author(s): Hochman, Gal
  • Zilberman, David
  • et al.
Abstract

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.

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