Reproducibility package for Trade, Outsourcing, and the Environment

2024

Get Reproducibility Package

Reference ID

RR_WLD_2023_57-v01

DOI

https://doi.org/10.60572/dmb1-ef23

Author(s)

Erhan Artuc, Konstantin Sommer

Collections

World Bank Policy Research Working Papers

Metadata

JSON

Created on

Jan 09, 2024

Last modified

Feb 29, 2024

Overview

Abstract

This paper analyzes the effects of carbon taxation and border carbon adjustments in a setting where firms can choose to respond to taxation by abating or by outsourcing part of their production. For this, this paper sets up a general equilibrium trade model, calibrated with world trade and input-output data that features a discrete choice production structure, where the producers choose between outsourcing or abating emission-intensive intermediate production steps. The paper finds that border adjustments that cannot target scope 3 emissions can lead to outsourcing, and thus leakage, further down the value chain, but nevertheless induce higher abatement both in the countries that impose the border adjustment and in the ones affected by it.

Reproducibility Package

Scripts

Readme Get Reproducibility Package

Link: https://reproducibility.worldbank.org/index.php/catalog/98/download/252/README.pdf

Reproducibility package (partial data and code) for Trade, Outsourcing and the Environment

Title

Reproducibility package (partial data and code) for Trade, Outsourcing and the Environment

Date

2024-01

Description

The code in this folder generates the tables and figures in the paper "Trade, Outsourcing and the Environment" by Erhan Artuc and Konstantin Sommer

Dependencies

Stata: All dependencies are stored in the ado folder. R: All dependencies are stored in the R environment. Matlab: Dependencies are listed in the README file and code.

Instructions

See README in reproducibility package.

Notes

Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.

Source code repository

Repository name	URI
Reproducible Research Repository (World Bank)	https://reproducibility.worldbank.org

Software

Name

Version

4.3.2

Stata

Name

Stata

Version

Matlab

Name

Matlab

Version

R2023a

Reproducibility

Technology environment

The code was reproduced on two computers with the following specifications:

Computer 1: Stata and R
– OS: Windows 11 Enterprise
– Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
– Memory available: 15.7 GB
– Software version: Stata version 17, R version 4.3.2
Computer 2: Matlab
– OS: Windows 10 Enterprise
– Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
– Memory available: 32 GB
– Software version: R2023a

Technology requirements

~3-hour runtime

Reproduction instructions

To run the script, new users only need to change the directory of the Main do file and R script and run the code.

Data

Datasets

World Input-Output Database (WIOD)

Name

World Input-Output Database (WIOD)

Note

Located at: data/raw/WIOTS_in_R The authors used the 2016 release and the "WIOT tables in R" as well as the Environmental Satelite accounts, both downloadable from the link below. The file names remain as downloaded, and one needs to unpack the folders AIR and EM into the same folder as the IO data. The files should be placed under "/data/raw/WIOTS_in_R". Source: Groningen Growth and Development Centre. Faculty of Economics and Business

Access policy

Published with package.

Data URL

https://www.rug.nl/ggdc/valuechain/wiod/wiod-2016-release

EORA Global Supply Chain database

Name

EORA Global Supply Chain database

Note

Located at: data/raw/EORA26_2009 The authors use the EORA 26 basic prices version from 2009, available at the link below. One needs to create a free account to download the data. File names remain as downloaded. The data should be placed under “data/raw/EORA26_2009”. Source: Lenzen, M., Moran, D., Kanemoto, K., Geschke, A. (2013) Building Eora: A Global Multi-regional Input-Output Database at High Country and Sector Resolution. Economic Systems Research, 25:1, 20-49, DOI:10.1080/09535314.2013.769938

Access policy

The data is public but restricted from republishing, hence it is not included in the package.

Data URL

https://worldmrio.com/eora26

OECD Environmental Tax Revenue data

Name

OECD Environmental Tax Revenue data

Note

Located at: data/raw/OECD/env_tax_rev/ERTR_31012023222956399.csv One can download the environmental tax data from the link below. The data should be placed under “data/raw/OECD/env_tax_rev/” Source: OECD.

Access policy

The data is public but restricted from republishing, hence it is not included in the package.

Data URL

https://stats.oecd.org/Index.aspx?DataSetCode=ERTR

OECD Exchange Rates data

Name

OECD Exchange Rates data

Note

Located at: data/raw/OECD/x_rates/x_rates.csv The authors use the OECD exchange rates towards the US dollar, which can be downloaded from the following link. The file is renamed to “x_rates.csv”, and should be placed under “data/raw/OECD/x_rates/”. Source: OECD.

Access policy

The data is public but restricted from republishing, hence it is not included in the package.

Data URL

https://data.oecd.org/conversion/exchange-rates.htm

Trade and the Greenhouse Gas Emissions data

Name

Trade and the Greenhouse Gas Emissions data

Note

Located at: data/raw/christea_et_al The authors use data from a replication package, which can be downloaded from David Hummel’s website in the link below. The name of the files remain unchanged and save them in the folder “data/raw/christea_et_al/”. Source: Cristea, A., Hummels, D., Puzzello, L., & Avetisyan, M. (2013). Trade and the greenhouse gas emissions from international freight transport. Journal of environmental economics and management, 65(1), 153-173.

Access policy

The data is public but restricted from republishing, hence it is not included in the package.

Data URL

https://business.purdue.edu/faculty/hummelsd/research/datasets.php

Trade Barriers and CO2 data

Name

Trade Barriers and CO2 data

Note

Located at: data/raw/trade_boundaries_rep The authors used data from a replication package, which can be downloaded from the link below. The files should be saved under “data/raw/trade_boundaries_rep” and do not change the file names. Source: lotz, R., & Sharma, R. R. (2023). Trade barriers and CO2. Journal of International Economics, 141, 103726.

Access policy

The data is public but the authors preferred not to share data from another reproducibility package, hence it is not included in the package.

Data URL

https://data.mendeley.com/datasets/m2tz6xvtzg/1

OECD Environmental Tax Revenues data

Name

OECD Environmental Tax Revenues data

Note

Located at: data/raw/OECD/eurostat/env_ac_taxind2_linear.csv The data can be downloaded from: the link below. One should rename the file to: “env_ac_taxind2_linear.csv” and placed under “data/raw/OECD/eurostat/”. Source: Eurostat.

Access policy

The data is public but restricted from republishing, hence it is not included in the package.

Data URL

https://ec.europa.eu/eurostat/databrowser/view/env_ac_tax/default/table?lang=en

FRED Consumer Price Index data

Name

FRED Consumer Price Index data

Note

Located at: data/raw/FED/CPIAUCSL.csv The authors used the Consumer Price Index for All Urban Consumers: All Items in U.S. City Average It can be downloaded from the link below. Source: U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items in U.S. City Average [CPIAUCSL], retrieved from FRED.

Access policy

Published with package.

Data URL

https://fred.stlouisfed.org/series/CPIAUCSL

CEPII Gravity data

Name

CEPII Gravity data

Note

Located at: data/raw/country_mapping.csv, country_mapping.txt For the welfare analysis, the authors split the estimates of: “Nordhaus, W. D., & Boyer, J. (2003). Warming the world: economic models of global warming. MIT press.”, into the countries that we study in our paper. This was done manually and relied on Table 3.1 in their paper. The authors provide the mapping in a CSV and a text file, which combines the 3-digit ISO code and the respective country grouping. The country codes from the gravity data from CEPII are available at the link below.

Access policy

Published with package.

Data URL

http://www.cepii.fr/CEPII/en/bdd_modele/bdd_modele_item.asp?id=8

World Bank Official Administrative Boundaries

Name

World Bank Official Administrative Boundaries

Note

Located at: data/raw/world.dta, world_shp_merc.dta To create the maps used in the replication package (which are unequal to the ones in the paper), one can download the shape files in the link below. The authors provide the Mercator projection shape files in the raw data folder.

Access policy

Published with package.

Data URL

https://datacatalog.worldbank.org/search/dataset/0038272

World Development Indicators - GDP data

Name

World Development Indicators - GDP data

Note

Located at: data/raw/WB_GDP_pc The authors use GDP data from the World Development Indicators from the World Bank. Available on the link below. The file is called “API_NY.GDP.PCAP.CD_DS2_en_csv_v2_4888903”.The files are under “data/raw/WB_GDP_pc”. Source: World Bank

Access policy

Published with package.

Data URL

https://databank.worldbank.org/reports.aspx?source=2&series=NY.GDP.MKTP.CD&country

Data statement

This research utilizes data from public sources. While all data used in this paper is publicly available, some of it is not republishable due to licensing restrictions. The data entries in this package outline all sources, including how to access the public but non-resharable data, along with instructions for their download and placement in the specified directories for full replication.

Description

Output

Trade, Outsourcing, and the Environment

Type

Working Paper

Title

Trade, Outsourcing, and the Environment

Authors

Erhan Artuc and Konstantin Sommer

Description

Policy Research Working Paper (PRWP) 10665

URL

http://documents.worldbank.org/curated/en/099321301112414585/IDU1e2f5c11c11f0614c5c19f511696a41248dec

DOI

https://doi.org/10.1596/1813-9450-10665

Authors

Author	Affiliation	Email
Erhan Artuc	World Bank	eartuc@worldbank.org
Konstantin Sommer	University of Amsterdam, Vrije Universiteit Amsterdam and World Bank	k.h.l.sommer2@uva.nl

Date of production

2024-01

Scope and coverage

Geographic locations

Location	Code
World	WLD

Keywords

Trade Environment Carbon tax Carbon tariffs Leakage

Topics

ID	Topic	Parent topic ID	Vocabulary
F13	Trade Policy • International Trade Organizations	F1	Journal of Economic Literature (JEL)
F18	Trade and Environment	F1	Journal of Economic Literature (JEL)
Q56	Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth	Q56	Journal of Economic Literature (JEL)

Disclaimer

The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

Access and rights

License

Name	URI
Creative Commons Attribution 4.0 International (CC BY 4.0)	https://creativecommons.org/licenses/by/4.0/

Contacts

Name	Affiliation	Email
Erhan Artuc	World Bank	eartuc@worldbank.org
Reproducibility WBG	World Bank	reproducibility@worldbank.org

Information on metadata

Producers

Name	Abbreviation	Affiliation	Role
Reyes Retana	MRR	World Bank	Junior Data Scientist

Date of Production

2024-01-03

Document version

Citation

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