{"id":17586,"date":"2015-12-31T10:34:11","date_gmt":"2015-12-31T10:34:11","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=17586"},"modified":"2024-08-19T14:29:49","modified_gmt":"2024-08-19T13:29:49","slug":"asymmetric-industrial-energy-prices-and-international-trade-3","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/asymmetric-industrial-energy-prices-and-international-trade-3\/","title":{"rendered":"Asymmetric industrial energy prices and international trade"},"content":{"rendered":"\n

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a rich panel dataset with 42 countries, 62 manufacturing sectors over 16 years (1996–2011) and covering 60% of global merchandise trade, we estimate the short-run effects of sector-level energy price asymmetry on trade. We find that changes in relative energy prices have a statistically significant but very small impact on imports. On average, a 10% increase in the energy price difference between two country-sectors increases imports by 0.2%. The impact is larger for energy-intensive sectors. Even in these sectors, however, the magnitude of the effect is such that changes in energy price differences across time explain less than 0.01% of the variation in trade flows. Simulations based on our model predict that a €40–65\/tCO2<\/sub> price of carbon in the EU ETS would increase Europe’s imports from the rest of the world by less than 0.05% and decrease exports by 0.2%.<\/p>\n

Energy Economics<\/em>, December 2014<\/strong><\/p>\n\n","protected":false},"excerpt":{"rendered":"\n

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a rich…<\/p>\n\n","protected":false},"author":12,"featured_media":17943,"template":"","tags":[89,240,202,98,302],"publication-type":[436],"topic_area":[4694],"class_list":["post-17586","publication","type-publication","status-publish","has-post-thumbnail","hentry","tag-carbon-prices","tag-economic-competitiveness","tag-energy-prices","tag-eu-ets","tag-international-trade","publication-type-research-articles","topic_area-policy-evaluation"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"a:1:{i:0;s:7:\"exclude\";}","type":"array","post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["misato-sato","antoine-dechezlepretre"],"type":"relationship","post_type":"profile"},"article_link":{"ref_value":"field_52eee3c7f0586","value":"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S0140988315002431","type":false,"post_type":""},"article_link_title":{"ref_value":"field_5322399d89d42","value":"External link to publisher","type":false,"post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"\nAsymmetric industrial energy prices and international trade - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/asymmetric-industrial-energy-prices-and-international-trade-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Asymmetric industrial energy prices and international trade - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. 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