{"type":"script","doc_desc":{"producers":[{"name":"Reyes Retana","abbr":"MRR","affiliation":"World Bank","role":"Junior Data Scientist"}],"prod_date":"2024-01-03","version":"1"},"project_desc":{"authoring_entity":[{"name":"Erhan Artuc","affiliation":"World Bank","email":"eartuc@worldbank.org"},{"name":"Konstantin Sommer","affiliation":"University of Amsterdam, Vrije Universiteit Amsterdam and World Bank","email":"k.h.l.sommer2@uva.nl"}],"output":[{"type":"Working Paper","title":"Trade, Outsourcing, and the Environment","authors":"Erhan Artuc and Konstantin Sommer","description":"Policy Research Working Paper (PRWP) 10665","uri":"http:\/\/documents.worldbank.org\/curated\/en\/099321301112414585\/IDU1e2f5c11c11f0614c5c19f511696a41248dec","doi":"https:\/\/doi.org\/10.1596\/1813-9450-10665"}],"title_statement":{"idno":"RR_WLD_2023_57-v01","title":"Reproducibility package for Trade, Outsourcing, and the Environment","identifiers":[{"type":"DOI","identifier":"https:\/\/doi.org\/10.60572\/dmb1-ef23"}]},"acknowledgment_statement":"This paper has been partly supported by Whole of Economy trust fund, the Umbrella Facility for Trade trust fund and the World Bank Knowledge for Change Program (KCP). The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank of Reconstruction and Development, the World Bank, and their affiliated organizations or those of the Executive Directors of the World Bank, or the countries they represent. We would like to thank Kevin Carey, Tom Farole, Carolyn Fischer, Henri de Groot, Dirk Heine, Franc Klaassen, Daniel Lederman, Hector Pollitt, and Daria Taglioni for their comments. All errors are our responsibility.","production_date":"2024-01","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.","geographic_units":[{"name":"World","code":"WLD","type":"Region"}],"keywords":[{"name":"Trade"},{"name":"Environment"},{"name":"Carbon tax"},{"name":"Carbon tariffs"},{"name":"Leakage"}],"topics":[{"id":"F13","vocabulary":"Journal of Economic Literature (JEL)","uri":" https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"F1","name":"Trade Policy \u2022 International Trade Organizations"},{"id":"F18","vocabulary":"Journal of Economic Literature (JEL)","uri":" https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"F1","name":"Trade and Environment"},{"id":"Q56","vocabulary":"Journal of Economic Literature (JEL)","uri":" https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"Q56","name":"\tEnvironment and Development \u2022 Environment and Trade \u2022 Sustainability \u2022 Environmental Accounts and Accounting \u2022 Environmental Equity \u2022 Population Growth"}],"datasets":[{"name":"World Input-Output Database (WIOD) ","note":"Located at: data\/raw\/WIOTS_in_R\n\nThe authors used the 2016 release and the \"WIOT tables in R\" as well as the Environmental Satelite accounts, both downloadable from the link below.\nThe file names remain as downloaded, and one needs to unpack the folders AIR and EM into the same folder as the IO data.\nThe files should be placed under \"\/data\/raw\/WIOTS_in_R\". \nSource: Groningen Growth and Development Centre. Faculty of Economics and Business","uri":"https:\/\/www.rug.nl\/ggdc\/valuechain\/wiod\/wiod-2016-release","access_type":"Published with package."},{"name":"EORA Global Supply Chain database","uri":" https:\/\/worldmrio.com\/eora26","note":"Located at: data\/raw\/EORA26_2009\n\nThe 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 \u201cdata\/raw\/EORA26_2009\u201d. \nSource: 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_type":"The data is public but restricted from republishing, hence it is not included in the package."},{"name":"OECD Environmental Tax Revenue data","uri":"https:\/\/stats.oecd.org\/Index.aspx?DataSetCode=ERTR","note":"Located at: data\/raw\/OECD\/env_tax_rev\/ERTR_31012023222956399.csv\n\nOne can download the environmental tax data from the link below. The data should be placed under \u201cdata\/raw\/OECD\/env_tax_rev\/\u201d\nSource: OECD.","access_type":"The data is public but restricted from republishing, hence it is not included in the package."},{"name":"OECD Exchange Rates data","note":"Located at: data\/raw\/OECD\/x_rates\/x_rates.csv\n\nThe authors use the OECD exchange rates towards the US dollar, which can be downloaded from the following link. The file is renamed to \u201cx_rates.csv\u201d, and should be placed under \u201cdata\/raw\/OECD\/x_rates\/\u201d.\nSource: OECD.","uri":"https:\/\/data.oecd.org\/conversion\/exchange-rates.htm","access_type":"The data is public but restricted from republishing, hence it is not included in the package.\n"},{"name":"Trade and the Greenhouse Gas Emissions data","note":"Located at: data\/raw\/christea_et_al\n\nThe authors use data from a replication package, which can be downloaded from David Hummel\u2019s website in the link below. The name of the files remain unchanged and save them in the folder \u201cdata\/raw\/christea_et_al\/\u201d.\nSource: 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.","uri":"https:\/\/business.purdue.edu\/faculty\/hummelsd\/research\/datasets.php","access_type":"The data is public but restricted from republishing, hence it is not included in the package."},{"name":"Trade Barriers and CO2 data","note":"Located at: data\/raw\/trade_boundaries_rep\n\nThe authors used data from a replication package, which can be downloaded from the link below. \nThe files should be saved under \u201cdata\/raw\/trade_boundaries_rep\u201d and do not change the file names.\nSource: lotz, R., & Sharma, R. R. (2023). Trade barriers and CO2. Journal of International Economics, 141, 103726.","uri":"https:\/\/data.mendeley.com\/datasets\/m2tz6xvtzg\/1","access_type":"The data is public but the authors preferred not to share data from another reproducibility package, hence it is not included in the package."},{"name":"OECD Environmental Tax Revenues data","uri":"https:\/\/ec.europa.eu\/eurostat\/databrowser\/view\/env_ac_tax\/default\/table?lang=en","access_type":"The data is public but restricted from republishing, hence it is not included in the package.","note":"Located at: data\/raw\/OECD\/eurostat\/env_ac_taxind2_linear.csv\n\nThe data can be downloaded from: the link below. One should rename the file to: \u201cenv_ac_taxind2_linear.csv\u201d and placed under \u201cdata\/raw\/OECD\/eurostat\/\u201d.\nSource: Eurostat."},{"name":"FRED Consumer Price Index data","access_type":"Published with package.","uri":"https:\/\/fred.stlouisfed.org\/series\/CPIAUCSL","note":"Located at: data\/raw\/FED\/CPIAUCSL.csv\n\nThe 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. \nSource: U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items in U.S. City Average [CPIAUCSL], retrieved from FRED."},{"name":"CEPII Gravity data","access_type":"Published with package. ","note":"Located at: data\/raw\/country_mapping.csv, country_mapping.txt\n\nFor the welfare analysis, the authors split the estimates of: \u201cNordhaus, W. D., & Boyer, J. (2003). Warming the world: economic models of global warming. MIT press.\u201d, 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.\nThe country codes from the gravity data from CEPII are available at the link below. ","uri":"http:\/\/www.cepii.fr\/CEPII\/en\/bdd_modele\/bdd_modele_item.asp?id=8"},{"note":"Located at: data\/raw\/world.dta, world_shp_merc.dta\n\nTo 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_type":"Published with package. ","uri":"https:\/\/datacatalog.worldbank.org\/search\/dataset\/0038272","name":"World Bank Official Administrative Boundaries"},{"name":"World Development Indicators - GDP data","access_type":"Published with package. ","note":"Located at: data\/raw\/WB_GDP_pc\n\nThe authors use GDP data from the World Development Indicators from the World Bank. Available on the link below. The file is called \u201cAPI_NY.GDP.PCAP.CD_DS2_en_csv_v2_4888903\u201d.The files are under \u201cdata\/raw\/WB_GDP_pc\u201d.\nSource: World Bank\n","uri":"https:\/\/databank.worldbank.org\/reports.aspx?source=2&series=NY.GDP.MKTP.CD&country"}],"software":[{"name":"R","version":"4.3.2"},{"name":"Stata","version":"17"},{"name":"Matlab","version":"R2023a "}],"scripts":[{"file_name":"RR_WLD_2023_57-v01.zip","zip_package":"RR_WLD_2023_57-v01.zip","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. \nR: All dependencies are stored in the R environment. \nMatlab: 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."}],"language":[{"name":"English","code":"EN"}],"contacts":[{"affiliation":"World Bank","name":"Erhan Artuc","email":"eartuc@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"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.","license":[{"name":"Creative Commons Attribution 4.0 International (CC BY 4.0)","uri":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"technology_environment":"The code was reproduced on two computers with the following specifications:\n1. Computer 1: Stata and R\n\u2013 OS: Windows 11 Enterprise\n\u2013 Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz\n\u2013 Memory available: 15.7 GB\n\u2013 Software version: Stata version 17, R version 4.3.2\n2. Computer 2: Matlab\n\u2013 OS: Windows 10 Enterprise\n\u2013 Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz\n\u2013 Memory available: 32 GB\n\u2013 Software version: R2023a","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.","technology_requirements":"~3-hour runtime","reproducibility_status":{"type":"Fully reproducible: this package contains all code and data files (or instructions for data access) necessary to reproduce all the results of the paper from the raw data"},"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."},"tags":[{"tag":"DOI"},{"tag":"Open code"},{"tag":"Open data"}],"schematype":"script"}