Carbon Border Adjustment, Green Compliance Capability, and Export Readiness in the Global South: A Global CBAM-GCCI Panel Study
Description
This dataset provides the replication package for the study titled “Carbon Border Adjustment, Green Compliance Capability, and Export Readiness in the Global South: A Global CBAM-GCCI Panel Study.” The study examines how EU-facing Carbon Border Adjustment Mechanism (CBAM) exposure and national green-compliance readiness jointly shape export readiness and development vulnerability across a global country-year panel covering 2007-2024. The dataset includes processed HS07-based EU-facing export exposure measures, direct CBAM, near-CBAM, and broader green-compliance product classifications, the weighted CBAM exposure index, alternative exposure-weight specifications, normalized exposure intensity, Green Composite Capability Index (GCCI) variables, macroeconomic and governance controls, diagnostic outputs, robustness tables, and R scripts used for empirical estimation. The empirical framework combines three layers: product-level CBAM exposure construction, GCCI readiness construction, and panel econometric testing. The main econometric approach uses two-way fixed effects with Driscoll-Kraay robust standard errors, supported by robustness checks using alternative exposure weights, normalized exposure intensity, exchange-rate exclusion, and group-wise estimations. The original source data were obtained from CEPII-BACI HS07 trade data, World Development Indicators, and Worldwide Governance Indicators. This repository contains the cleaned and processed analytical files, documentation, variable dictionary, source register, and replication scripts required to reproduce the tables, diagnostics, and empirical results reported in the manuscript.
Files
Steps to reproduce
To reproduce the results, extract the replication package and open the R scripts folder. Run the scripts sequentially according to the numbering provided in the file names. The workflow begins with importing and cleaning the processed HS07 EU-facing export data, followed by the construction of direct CBAM, near-CBAM, and broader green-compliance product categories. The weighted CBAM exposure index is then calculated using the baseline weighting structure of 0.60 for direct CBAM exports, 0.25 for near-CBAM exports, and 0.15 for broader green-compliance exports. Next, merge the CBAM exposure file with World Development Indicators and Worldwide Governance Indicators variables using country-year identifiers. Construct or verify the Green Composite Capability Index (GCCI) using the documented readiness indicators and normalization procedure described in the data dictionary. After the final analytical panel is created, run the diagnostic scripts to generate descriptive statistics, correlation matrix, variance inflation factor diagnostics, and within-between panel decomposition. Finally, run the econometric scripts to estimate the two-way fixed-effects models with Driscoll-Kraay robust standard errors. The robustness scripts reproduce the balanced-weight, strict direct-CBAM, equal-weight, normalized exposure-intensity, exchange-rate exclusion, and group-wise estimations. The exported output tables correspond to the tables reported in the manuscript.
Institutions
- Iqra UniversitySindh, Karachi