Title: Assessment of issues related to international trade and environmental impacts (emissions): an analysis for Brazil

Authors: Weslem Rodrigues Faria; Vinicius de Almeida Vale; Fernando Salgueiro Perobelli; Admir Antonio Betarelli Junior

Addresses: Department of Economics, Federal University of Juiz de Fora (UFJF), José Lourenço Kelmer Street, Campus Universitário, Faculdade de Economia, Juiz de Fora – MG, 36036–330, Brazil ' Department of Economics, Federal University of Paraná (UFPR), Av. Prefeito Lothário Meissner, 632, Jardim Botânico, Curitiba – PR, 80210–170, Brazil ' Department of Economics, Federal University of Juiz de Fora (UFJF), José Lourenço Kelmer Street, Campus Universitário, Juiz de Fora – MG, 36036–330, Brazil ' Department of Economics, Federal University of Juiz de Fora (UFJF), José Lourenço Kelmer Street, Campus Universitário, Juiz de Fora – MG, 36036–330, Brazil

Abstract: This study is aimed at evaluating the impacts of the Brazilian trade structure on the amount of emissions, that is, at identifying the main trade links of Brazil in terms of CO₂ emissions. We have considered two simulations through a global computable general equilibrium model - GTAP-E, calibrated with 2011 data. The first simulation specifies an incentive of 10% in the form of subsidies to Brazil's world exports to all sectors and regions. Analogously, the second simulation specifies a reduction of 10% in import tariffs for all sectors and regions of Brazil. The main results indicate that incentives to exports and imports would increase the emissions in Brazil and in most other regions. Firstly, because of the increase in the economic activity level of those sectors that use energy products more intensely as intermediate inputs, such as the transport sector. Secondly, because of the relative cheapness of foreign products, which would facilitate the purchase of energy inputs by Brazil. The main CO₂ emission channels of the Brazilian international trade are with the rest of Europe and Argentina.

Keywords: international trade; emissions; computable general equilibrium model; Brazil.

DOI: 10.1504/IJESD.2023.129870

International Journal of Environment and Sustainable Development, 2023 Vol.22 No.2, pp.134 - 166

Accepted: 27 Sep 2021
Published online: 03 Apr 2023 *

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