Energy and Carbon Embodied in the International Trade of Brazil

Shifting the economicstructure of a country towardsenergy-intensive industries may lead tosignificant effect on the environment. Oneof the major environmental impactsassociated to such changes is the increaseof the Carbon Dioxide emissions – the mainfactor behind the greenhouse effect. In thelast decades, structural changes in theBrazilian economy were close related tochanges in the country's tradespecialization. This paper analyzes to whatextent energy use and its associatedCO2 emissions of Brazil in the 90's maybe overloaded by changes in the country's trade specialization towards a moreenergy-intensive mix. This study finds thatBrazil exported, in net terms, significantamounts of energy and carbon (C) embodied ingoods traded with the rest of the world inthe 90's. In fact, some 6.6% of the finalenergy used by the industrial sector andaround 7.1% of its C emissions areprompted by international trade. Byoverloading the country'S energy use andits associated environmental damage (bothlocal and global), this situation seems tocontribute to increase not only local butalso global environmental damage, sinceC leakage from non-Annex I countriesdue to international trade may lead tohigher C concentration in theatmosphere.