Is there a waterbed effect generated by carbon reduction policies? A parallel EU-27 – China
Is there a waterbed effect generated by carbon reduction policies? A parallel EU-27 – China

Summary/Abstract: This study explores the phenomenon known as the waterbed effect in the context of carbon emission reduction policies, focusing on a comparison between the EU-27 and China. This is an economic metaphor used to describe the migration of phenomena from one place to another following the implementation of restrictive policies, especially between regions with differing regulatory standards. Global trade dynamics play a crucial role, with trade relationships between the EU-27 and China influencing carbon emissions. Despite EU-27 efforts, the trade deficit with China has widened, leading to a disproportionate increase in emissions. Analysed data indicate the existence of a waterbed effect concerning carbon emissions between the two regions, potentiated by the redistribution of emissions due to disparities in environmental regulations and production outsourcing. Thus, the study reveals a correlation between trade imbalances and carbon emissions, with China's emissions surpassing those of the EU-27 in recent years. Efforts to curb emissions within the EU-27 are undermined by the waterbed effect, exacerbating global climate challenges. Moreover, the waterbed effect evolves into a "move the goalposts" phenomenon, emphasizing the need for comprehensive and collaborative climate policies. This analysis contributes to a deeper understanding of the complex dynamics between climate policy and the global distribution of carbon emissions, with notable implications for the development and future implementation of environmental policies worldwide. Addressing climate change requires a multifaceted approach, with EU-27 climate policies playing a crucial role. To effectively mitigate climate change, EU-27 policies must advocate for international agreements, contribute to global conservation efforts, and implement domestic policies with minimal economic impact. Additionally, recognizing the interconnectedness of global emissions and trade dynamics is essential to developing sustainable solutions. Ultimately, a collective effort is needed to combat climate change, emphasizing the importance of comprehensive and equitable climate policies on a global scale.

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