Do countries with large energy endowments have larger energy-intensive sectors? We answer this question empirically using a panel with 14 high-income countries from Europe, America and Asia and 10 broad sectors, from 1970 to 1997. Energy-abundant countries have 7 to 10 percent higher employment and 13 to 17 percent higher net exports per value added in energy-intensive sectors vis-a-vis otherwise comparable countries. Conversely, energy-scarce countries specialize in non-energy-intensive sectors.
AicheleR.FelbermayrG. (2012). “Kyoto and the carbon footprint of nations.” Journal of Environmental Economics and Management63: 336-354. http://dx.doi.org/10.1016/joeem.2011.10.005.
2.
AicheleR.FelbermayrG. (2013). “Estimating the Effects of Kyoto on Bilateral Trade Flows Using Matching Econometrics.” The World Economy36(3): 303-330. http://dx.doi.org/10.1111/twec.12053.
3.
Babiker M.H. (2005). “Climate change policy, market structure, and carbon leakage.” Journal of International Economics65(2): 421-445. http://dx.doi.org/10.1016/jointeco.2004.01.003.
4.
BaldwinR.E. (2008). The Development and Testing of Heckscher-Ohlin Trade Models. MIT Press, Cambridge, Massachusetts. http://dx.doi.org/10.7551/mitpress/9780262026567.001.0001.
5.
BowenH.P.LeamerE.E.SveikauskasL. (1987). “Multicountry, Multifactor Tests of the Factor Abundance Theory.” American Economic Review77(5): 791-809.
6.
CraftsN.MulatuA. (2005). “What explains the location of industry in Britain, 1871-1931?” Journal of Economic Geography5(4): 499-518. http://dx.doi.org/10.1093/jeg/lbh069.
7.
EderingtonJ.MinierJ. (2003). “Is environmental policy a secondary trade barrier? An empirical analysis.” Canadian Journal of Economics36(1): 137-154. http://dx.doi.org/10.1111/1540-5982.00007.
8.
EllisonG.GlaeserE.L. (1999). “The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?” American Economic Review: Papers and Proceedings89(2): 311-316. http://dx.doi.org/10.1257/aer.89.2.311.
9.
FelderS.RutherfordT.F. (1993). “Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials.” Journal of Environmental Economics and Management25(2): 162-176. http://dx.doi.org/10.1006/jeem.1993.1040.
10.
GustavssonP.HanssonP.LundbergL. (1999). “Technology, resource endowments and international competitiveness.” European Economic Review43(8): 1501-1530. http://dx.doi.org/10.1016/S0014-2921(98)00027-0.
11.
GerlaghR.MathysN.A. (2011). “Energy abundance, trade and industry location.” FEEM working paper 3.2011.
12.
GretherJ.-M.HotzI.MathysN.A. (2014). “Industry location in Chinese provinces: does energy abundance matter?” Energy Economics, 44: 383-391.
13.
HillmanA.L.BullardC.W. (1978). “Energy, the Heckscher-Ohlin Theorem, and U.S. International Trade.” American Economic Re-view68(1): 96-106.
14.
KeeH. L.MaH.ManiM. (2010). “The Effects of Domestic Climate Change Measures on International Competitiveness.” The World Economy33(6): 820-829. http://dx.doi.org/10.1111/j.1467-9701.2010.01286.x.
15.
MichielsenT.O. (2013). “The distribution of energy-intensive industries in the U.S..” Journal of Economic Geography13(5): 871-888. http://dx.doi.org/10.1093/jeg/lbs045.
16.
Midelfart-KnarvikK.H.OvermanH.G.VenablesA.J. (2000). “Comparative Advantage and Economic Geography: Estimating the Location of Production in the EU.” Centre for Economic Policy Research, Discussion Paper No. 2618.
17.
MulatuA.GerlaghR.RigbyD.WossinkA. (2010). “Environmental Regulation and Industry Location in Europe.” Environmental and Resource Economics45(4): 459-479. http://dx.doi.org/10.1007/s10640-009-9323-3.
18.
RomalisJ. (2004). “Factor proportions and the structure of commodity trade.” American Economic Review94(1): 67-97. http://dx.doi.org/10.1257/000282804322970715.
19.
TreflerD. (1995). “The Case of Missing Trade and Other Mysteries.” American Economic Review85(5): 1029-1046.