The evolution of carbon dioxide emissions embodied in international trade in Poland: An input-output approach

Abstract

Abstract International agreements that aim to reduce carbon dioxide emissions have raised concerns due to the risk of carbon leakage caused by trade liberalization. This study aims to analyse the carbon dioxide emissions related to trade flows for the case of Poland, in order to further investigate the interrelationship between emissions and the quick economic growth the country has faced since 2000. The communist past, the quick liberalization of the economy, the trade opening, entrance to the EU and the intense carbon economy, are some of the characteristics that make Poland an interesting case. The data available data from 1996 to 2008 were collected using the World Input-Output Database and were analyzed using the Input-Output method, and more concretely by constructing a multi-regional input-output model for the years studied. The findings indicate that there were substantial effects on the emissions of Poland that resulted from the opening of the economy and joining the European Union. Poland is a net importer of carbon emissions from other European countries; however, this phenomenon seems to be regulated by EU legislation. Additionally, it was shown that Polish imports from countries with less strict environmental policies significantly embody higher levels of emissions than its exports. This observation calls for stricter environmental regulations to avoid carbon leakage.