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| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | The hidden green sourcing potential in European trade |
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| Institution | University of Zurich |
| Series Name | Kühne Center Impact Series |
| Number | 01-22 |
| Number of Pages | 14 |
| Date | 2022 |
| Abstract Text | In this Kühne Impact Series, we substantiate our claim that international trade should play a central role in the fight against climate change. The key message is that “buying green” does not necessarily mean “buying local” and that a smart combination of local and foreign sourcing yields the best results. To this end, we construct an exhaustive database on the greenhouse gas emissions related to international trade flows from and to the European Union. Our first main result is that 28% of European trade flows are already green in the sense of bringing about a net reduction in greenhouse gas emissions relative to domestic sourcing. Our second main result is that a simple green sourcing rule could reduce trade-related emissions by 35%. Hence, there is a substantial green sourcing potential remaining in European trade. |
| Official URL | https://www.kuehnecenter.uzh.ch/impact_series/2022_04_15-01-22-hidden_green_sourcing_potential.html |
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