The embodied energy in trade: What role does specialization play?

Initiative -
Type KAPSARC journal article
Date 1 November 2015

Abstract

Many industrialized countries are net importers of embodied energy and emissions, while many developing countries are net exporters. We examine the role of specialization in driving these trade patterns by conducting a spatial index decomposition analysis on the embodied energy in net exports for 41 economies. The results reveal that industrialized countries have generally offshored energy intensive production, which many developing countries specialize in. We find that specialization, on average, makes the biggest contribution, accounting for roughly 50% of a country’s embodied energy in net exports. However, other factors, namely energy intensity and the trade balance, combine to make an equally important contribution. In summary, specialization, despite its significant role, is not the only cause of the embodied energy trade patterns observed between industrialized and developing countries. © 2015 Elsevier Ltd.

https://www.kapsarc.org/booksarticles/page/3/#

Energy Policy

Authors

Anwar Gasim

Research Fellow Anwar is an energy and environmental economist with a strong engineering background. He leads a cross-functional team on the project… Anwar is an energy and environmental economist with a strong engineering background. He leads a cross-functional team on the project titled “Modeling Energy Demand, Emissions, and the Impacts of Energy Price Reform.” This project includes studies on elasticities, emissions forecasting, the economic and environmental impacts of reforms, and understanding what leads to successful energy policy outcomes. He is also involved in multiple studies on carbon markets. Anwar’s research has been published in leading journals and has been picked up by numerous media publications, such as the Saudi Gazette and Arab News. His work has supported key advisory engagements with the Saudi energy sector. Anwar is currently wrapping up a Ph.D. from UCL in Sustainable Resources (with a sub-specialization in Economics). He holds an M.Sc. in Electrical Engineering from KAUST and a B.Eng. in the same field from the University of Liverpool.

Expertise