Trade In Low Carbon Technologies The Role Of Climate And Trade Policies
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Trade in Low Carbon Technologies: The Role of Climate and Trade Policies
Author | : Samuel Pienknagura |
Publisher | : International Monetary Fund |
Total Pages | : 30 |
Release | : 2024-03-29 |
Genre | : Business & Economics |
ISBN | : |
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Curbing carbon emissions to meet the targets set in the Paris Agreement requires the deployment of low carbon technologies (LCTs) at a global scale. This paper assesses the role of climate and trade policies in fostering LCT diffusion through trade. Leveraging a comprehensive database of climate policies and a new database identifying trade in low carbon technologies and the tariffs applied to these goods, this paper shows that the introduction of new climate policies has a positive and significant impact on LCT imports. Zooming into specific climate policies, the paper finds that, except for non-binding ones, all climate policies stimulate LCT imports. The paper also highlights the role of trade policies as an engine of LCT diffusion—reductions in tariffs applied on LCT goods have a sizeable impact on LCT imports. On the flip side, results suggest that more protectionist measures would impede the spread of low-carbon technologies.
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