Wednesday, April 27, 2011

The cost of trade

Rich countries are outsourcing carbon-dioxide emissions

WHEN a country reports its carbon emissions to the United Nations, it is the carbon dioxide that goes out of chimneys, exhaust pipes and forest fires of the country’s own territory that gets counted. But what about the carbon emitted elsewhere by people making goods that the country imports? A paper just published in PNAS by Glen Peters and colleagues from Cicero, a research group, looks at how the world’s carbon emissions get reapportioned when the carbon used to make traded goods and services is charged against the account of the ultimate consumer, not the initial producer.

See full Article.