Postgraduate research opportunities Carbon leakage and trade policy
ApplyKey facts
- Opens: Monday 22 January 2024
- Deadline: Wednesday 3 April 2024
- Number of places: 1
- Duration: 3 years
- Funding: Home fee, Stipend
Overview
The introduction of carbon pricing in a country or in a coalition of countries may increase emissions in other countries with laxer environmental policies. This is known as carbon leakage. In this project we develop and apply a trade computable general equilibrium model augmented to include new trade theory. The model is used to measure carbon leakage and to assess the impact of policies to mitigate carbon leakage.Eligibility
Candidates are required to have:
- A strong performance at master’s level where Economics is the primary focus, with the expected completion date of the master’s degree no later than September 2024, along with at least 2.1 performance, or the equivalent, in a relevant undergraduate degree.
- An interest in applied economics analysis, environmental economics, including programming skills.
- A demonstrable aptitude to undertake research and develop into an independent researcher.
- Experience in coding applied to the solution of economic models is highly desirable.
- Previous knowledge of programming in GAMS is desirable for this project but not essential.
- Other relevant experience or skills will also be considered so please highlight these in your application.
Eligibility criteria will be tested both through CV screening and interview. The interview will include the completion of a practical task linked to the project.
Strathclyde Business School is committed to supporting a diverse and inclusive postgraduate research population. We make decisions on entry by assessing the whole person and not relying solely on academic achievements. On that basis, please ensure that your application (via your CV and covering letter) can evidence your resourcefulness, commitment and resilience as demonstrated by broader professional and life experiences. This evidence should be centred on your ability to undertake and complete a PhD and contribute to a positive PhD community.
If English isn't your first language, you'll need an IELTS score of 6.5 or equivalent with no individual element below 5.5.
Project Details
Carbon leakage occurs when the introduction of environmental policies such as carbon pricing in a country or a coalition of countries leads emissions to increase in third countries with laxer environmental policies. This well-known phenomenon may occur due to competitiveness effects given by the fact that countries that do not impose carbon pricing face lower production costs and due to responses in global energy markets.
Multi sectoral, multi country computable general equilibrium models have been widely adopted for the quantification of leakage rate following a wide range of policies. These models can be used to conduct ex ante assessment of policy impacts in a controlled environment where policy scenarios can be compared with a business-as-usual no policy intervention. In this project we build on the existing literature and extend a conventional computable general equilibrium model with new trade theory inspired by the work of Melitz. Models based on simple imperfect substitution (Armington) assumptions do not consider firms heterogeneity and productivity effects (positive or negative) linked to changes in trade policies thus they may be missing important channels for leakage.
The newly built model has the potential for addressing important questions starting from a quantification of leakage that accounts for trade effects in a more realistic setting. The model can be used to assess the impact of policies aimed at combating carbon leakage such as border carbon adjustment. In addition, the project will look into distributional effects of both environmental policies and of policies aimed at reducing leakage.
The candidate will also part of the Centre for Inclusive Trade Policy network to which this project is affiliated. The successful candidate for this project will join a vibrant community of postgraduate researchers at the University of Strathclyde in Economics, home of the Fraser of Allander Institute.
Further information
The project is part of the Centre for Inclusive Trade Policy.
Apply
Your application must include:
- A cover letter motivating your interest in undertaking this particular project.
- An updated curriculum vitae.
- Details of two academic referees, including email addresses.
- Academic transcripts, which must be certified copies.
Number of places: 1
There will be a shortlisting and interview process. The interview will involve a practical task.
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Economics
Programme: Economics
Economics
Programme: Economics