Exporting pollution? : Calculating the embodied emissions in trade for Norway

Economic activity causes to varying degree pollution to air, soil and water. The pollution that is caused by the production of a single unit of a certain commodity can be said to be embodied in the commodity. This approach allows us to investigate environmental issues from a consumption-centred perspective, and this is especially important in the case where the embodied pollution in a certain commodity is not restricted to the country where the commodity is consumed. In this thesis, I present some possible approaches to measure the emissions embodied in the exports and imports of different commodities. The indicator which I focus on, the so-called Pollution Terms of Trade is presented in the second chapter, and its main features is discussed and I also propose several possible applications. The indicator is based on trade data and emission intensities in the production of different commodities, and I pay particular attention to the importance of using country-specific intensities in order to capture the total embodied emissions in trad