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PRODID:https://www.diw.de/de/diw_01.c.806339.de/veranstaltungen.html
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UID:diw_01.c.967259.en
LOCATION:Francine D. Blau Room (Room 3.3.002B),DIW Berlin,Anton-Wilhelm-Amo-Strasse 58,10117 Berlin
SUMMARY:Clean Production, Dirty Sourcing: How Embodied Emissions Alter the Environmental Footprint of Exporters
DESCRIPTION:11:30 - 12:30 // This paper revisits the exporter’s environmental premium (EEP) by incorporating emissions embodied in domestically and internationally sourced intermediate inputs. Combining administrative firm-level data and customs records for German manufacturers with an environmentally extended input-output table and fuel specific emission factors, we document three stylized facts: (i) embodied emissions account for over half of firms’ total emissions; (ii) exporters’ production involves disproportionately more embodied emissions, particularly through international sourcing; and (iii) once embodied emissions are considered, the EEP reverses: exporters appear cleaner based on production-related emissions alone, but dirtier in total emissions. We rationalize these patterns in a sourcing model and test its predictions using a shift-share IV strategy based on foreign demand shocks. Export expansion lowers the production-related emission intensity without affecting total emissions, underscoring the role of sourcing in shaping firm-level environmental outcomes. These findings highlight the importance of accounting for embodied emissions when evaluating the welfare and environmental consequences of trade liberalization.
DTSTART;VALUE=DATE:20250716
DTEND;VALUE=DATE:20250716
DTSTAMP:20250703T220000Z
URL:https://www.diw.de/en/diw_01.c.967259.en/events/clean_production__dirty_sourcing__how_embodied_emissions_alter_the_environmental_footprint_of_exporters.html
ORGANIZER;CN=Themistoklis Kampouris:mailto:tkampouris@diw.de
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