Consumption Pattern, Trade and Greenhouse Gas Leakage in India

Environment and development Economics Vol. 9, No. 3

Posted: 26 Aug 2008

See all articles by Ramprasad Sengupta

Ramprasad Sengupta

Jawaharlal Nehru University - Centre for Economic Studies and Planning (CESP)

Geetesh Bhardwaj

Walleye Capital

Date Written: 2004

Abstract

The policy discussions for sharing the global responsibility of abatement of greenhouse gas (GHG) emissions by individual countries take account neither of the pattern of their final consumption nor of the role of globalisation through trade in the leakage of GHGs across national boundaries. This paper gives the methodology of estimating the total emissions of a GHG, which is imputable to the consumption pattern of a country and the effect of trade on the net leakage of such gas. The paper estimates the effect of trade on the net leakage of carbon dioxide and methane from India. It shows a significant net leakage of carbon dioxide from India for the observed consumption pattern in the nineties. In spite of the difficulty of application of the method of estimating the leakage due to data constraints regarding regularly updated input-output tables for the different countries, the results point to the necessity of using some policy measure to influence globally the preference structure of the people in favour of an ecofriendly consumption pattern.

Keywords: Greenhouse effect, Trade, Input-output, ecofriendly consumption pattern

JEL Classification: C13, C67, F13

Suggested Citation

Sengupta, Ramprasad and Bhardwaj, Geetesh, Consumption Pattern, Trade and Greenhouse Gas Leakage in India (2004). Environment and development Economics Vol. 9, No. 3, Available at SSRN: https://ssrn.com/abstract=605682

Ramprasad Sengupta

Jawaharlal Nehru University - Centre for Economic Studies and Planning (CESP)

New Delhi
India

Geetesh Bhardwaj (Contact Author)

Walleye Capital ( email )

315 Park Ave
New York, NY 10010

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