Seminar

Abstract
In this study CO2 emissions embodied in Austrian international trade are quantified employing a 66-region input output model of multidirectional trade. We find that Austria's final demand CO2 responsibilities on a global scale are 38% higher than conventional statistics report (110 Mt-CO2 versus 79 Mt-CO2 in 2004). For each unit of Austrian final demand, currently two thirds of the thus triggered CO2 emissions occur outside Austrian borders. We then develop a 19-region computable general equilibrium model of Austria and its major trading partners and world regions to find that future Austrian climate policy can achieve the EU 20-20 emission reduction targets, but that its carbon trade balance would worsen considerably. Both unilateral EU and internationally coordinated climate policies affect Austrian international trade stronger than its domestic production.

Based on
Bednar-Friedl, B., P. Muñoz Jaramillo, T. Schinko, K. Steininger (2009), The Carbon Content of Austrian Trade Flows in the European and International Trade Context, FIW Research Reports 2009/2010 N° 05 / Trade, Energy and Environment.