Paper Title
CZECH TRADE IN LOW-CARBON PRODUCTS
Abstract
Global decarbonization efforts are creating new opportunities in the rapidly growing low-carbon sector. The trade of low-carbon technology (LCT) products, designed to reduce greenhouse gas emissions, supports countries in meeting their emissions reduction targets. With its export-oriented economy, the Czech Republic plays an active role in LCT trade, contributing to the shift towards a low-carbon economy. This paper aims to assess Czech trade in LCT products from 2017 to 2023 and identify potential dependencies on LCT imports, addressing a gap in the current literature regarding Czechia’s contributions to this expanding sector. The LCT product list was retrieved from the IMF Climate Change Indicators Dashboard, and Ballasa’s index was employed to estimate the revealed comparative advantage of Czech exports in LCT products. The results showed that the Czech Republic’s share in global LCT trade is above average and growing, with a consistently positive trade balance.Czechia has a comparative advantage in its top ten traded products which rank among the top ten most complex products globally. While Czech LCT exports are primarily directed towards EU countries, imports rely more on non-EU countries such as China, the USA, and Japan. Consequently, potential tariff and non-tariff barriers, stemming from factors such as geopolitical tensions, could present challenges to the import of LCT goods essential for the decarbonization of the economy.
Keywords - Low-Carbon Products, Czech Republic, Trade, Decarbonization