Green energy shift and international trade

Green energy shift and international trade The aim of the current paper is to assess the impact the removal of fossil fuel subsidies will have on the environment and international trade. More specifically we explore two scenarios: (i) the shift from fossil fuel subsidies to the green energy sector and (ii) the use of these subsidies as a lump sum for building a green technology fund to foster the energy efficiency in terms of investment in new renewable energy technologies. We use a mixed model representing a merge of the GDynE (the energy version of the dynamic GDyn) with the new GTAP-Power. Our model relies on the GTAP-database 10 with a base year 2014. The model is a recursive dynamic type that allows the simulation of long-term policies, including an assessment related to different timing in implementing climate policies. Preliminary resutls show the importance of a green engery shift on international trade.