International Trade and Energy Use

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  • Tsurumi Tetsuya
    Graduate School of Frontier Sciences, The University of Tokyo
  • Managi Shunsuke
    Graduate School of Environmental Studies, Tohoku University and the Institute for Global Environmental Strategies
  • Hibiki Akira
    Social and Environmental Systems Division, National Institute for Environmental Studies

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Other Title
  • 国際貿易とエネルギー利用
  • コクサイ ボウエキ ト エネルギー リヨウ

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Abstract

<p>Recently international efforts have led toward increasing trade openness. Also, reduced dependence on energy use can mitigate global warming and improve air quality by reducing pollutants such as sulfur oxide and nitrogen oxide, and is an important item on the energy security agenda. This paper re-examines the effect of trade openness on energy use by a dynamic adjustment process and addresses the endogeneity problems. Trade is found to increase energy use in non-OECD countries in both the short and the long term. On the other hand, in OECD countries, while we find that trade decreases energy use in the short term, it increases energy use in the long term. Furthermore, our results imply that although</p><p>the short term effect is limited, the long term effect is highly significant.</p>

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