Imports help cut carbon emissions

A study in the Journal of International Economics by Rikard Forslid, Anders Åkerman and Ossian Prane shows that Swedish manufacturing firms are reducing their carbon emissions.

Photo: Mostphotos/Vitaliy Pakhnyushchyy

The study is written by Rikard Forslid and Ossian Prane at the Department of Economics, Stockholm University, and Anders Åkerman at the University of Stavanger. By analysing shocks in international trade from 2004 to 2016, they find that firms which increased their imports were able to significantly reduce their carbon intensity, a key measure of emissions per unit of output.

According to the study, a 10 percent boost in the imports of intermediate goods – such as components or raw materials used in production – resulted in a 5.6 percent drop in carbon intensity. Over the 12-year period, the overall carbon intensity of the firms in the study fell by 50 percent, and the researchers estimate that one-third of this decline can be attributed to growing imports.

More about the study

”Imports and the CO2 emissions of firms” is published in Journal of International Economics, volume 152, November 2024.

Read the study here

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Last updated: September 30, 2024

Source: Department of Economics

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