The effect of the Kyoto Protocol on international trade flows: evidence from G20 countries

ABSTRACT

This study examines the effect of the Kyoto Protocol on trade using gravity model with a Quandt–Andrews test for detection of structural break with G20 countries data. The structural break on international trade took place in 2003 that is around 1 year after the adoption of the Marrakesh Accords which includes the detailed implementation rules of the Kyoto Protocol. According to estimation results, this study can support the negative effect of environmental regulations on trade flows.

KEYWORDS:

• Gravity model
• Kyoto Protocol
• structural breakpoint
• trade flows

JEL CLASSIFICATION:

• F18
• Q56

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

This research was supported by Kyungpook National University A.S Research Fund, 2013.