Effects of International Climate Agreements on Trade in Environmental Goods: The Kyoto Protocol

This study analyzes the impact of international climate agreements-specifically the Kyoto Protocol-on the trade in environmental goods over the period 1997-2021. Using entropy balancing and a sample of 112 countries, we show that the Kyoto Protocol led to an overall increase in the trade of environmental goods among Annex B countries. During this period, the protocol notably stimulated imports, although it did not significantly boost exports prior to 2016. The analysis also highlights heterogeneities linked to countries' technological capacities, economic structures, and institutional characteristics.