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Does Trade Liberalization Harm the Environment? A New Test

Does Trade Liberalization Harm the Environment? A New Test PDF Author: Judith M. Dean
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

Book Description
Recent events such as the NAFTA and the completion of the Uruguay Round have raised concern over the impact of trade liberalization on the environment. In particular, it is believed that less stringent environmental standards in developing countries will give them a comparative advantage in pollution-intensive goods. Using single equation models, existing empirical studies have found either no relationship between environment and trade flows, or a positive relationship between trade liberalization and the environment. This paper develops a simultaneous-equations model to estimate this relationship, directly incorporating the effects of openness on growth of income, and of income growth on environmental damage. A two-good trade model with endogenous factor supply is estimated using pooled provincial data on Chinese water pollution from 1987-1995. Estimation of this model reveals that trade liberalization directly aggravates environmental damage via its influence on the terms of trade, but indirectly mitigates it via its effect on income growth. Simulations suggest that trade reform during the period may have had a net beneficial impact on emissions growth.

Does Trade Liberalization Harm the Environment? A New Test

Does Trade Liberalization Harm the Environment? A New Test PDF Author: Judith M. Dean
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

Book Description
Recent events such as the NAFTA and the completion of the Uruguay Round have raised concern over the impact of trade liberalization on the environment. In particular, it is believed that less stringent environmental standards in developing countries will give them a comparative advantage in pollution-intensive goods. Using single equation models, existing empirical studies have found either no relationship between environment and trade flows, or a positive relationship between trade liberalization and the environment. This paper develops a simultaneous-equations model to estimate this relationship, directly incorporating the effects of openness on growth of income, and of income growth on environmental damage. A two-good trade model with endogenous factor supply is estimated using pooled provincial data on Chinese water pollution from 1987-1995. Estimation of this model reveals that trade liberalization directly aggravates environmental damage via its influence on the terms of trade, but indirectly mitigates it via its effect on income growth. Simulations suggest that trade reform during the period may have had a net beneficial impact on emissions growth.

Does Trade Liberalization Harm the Environment?

Does Trade Liberalization Harm the Environment? PDF Author:
Publisher:
ISBN:
Category : Commercial policy
Languages : en
Pages :

Book Description


Will Trade Liberalization Harm the Environment?

Will Trade Liberalization Harm the Environment? PDF Author: Anna Strutt
Publisher:
ISBN:
Category : Environmental policy
Languages : en
Pages : 42

Book Description


Testing the Impact of Trade Liberalization on the Environment

Testing the Impact of Trade Liberalization on the Environment PDF Author: Judith Myrle Dean
Publisher:
ISBN:
Category :
Languages : en
Pages : 32

Book Description


Effects of International Trade on the Environment

Effects of International Trade on the Environment PDF Author: Caroline Mutuku
Publisher: GRIN Verlag
ISBN: 3668739609
Category : Business & Economics
Languages : en
Pages : 20

Book Description
Seminar paper from the year 2018 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 1, , language: English, abstract: This paper looks into the effects the international trade has on the environment. Trade and environment is one of the most debated topics in management and economics studies over the years because of the increasing concerns on how international trade affects environment and vice versa. That said, the debate on trade and environment is not new, and it emerged in the early 1970s with concerns such as environmental protection, environmental policies on trade, and the impact on trade on environment. Most of the developed economies expressed interests on environmental degradation linked with the globalization process for instance, industrial pollution. In the 1980s, environmental concerns increased as more complex environmental issues were raised such as the climate change and the depletion of the ozone layer. Later in the 1990s, the sustainable development concept was introduced as trade liberalization and the globalization process accelerated. Several theories in support of international trade such as the economic theory has rendered the debate complex as the proponents of the economic theory argue that international trade is vital to economies because it results into a robust economic growth and also generates greater wellbeing of its citizens. That said, environmental policies and goals have been difficult to achieve during these debates. Diverse arguments exist about international trade with a few ecologists in favour of environmental protection as they argue that international trade has resulted into environmental depletion as the demand of world natural resources continue to increase. Of the two perspectives, there is an intermediate concept which has been proposed, the sustainable development which means that as international trade results into economic growth, this growth must be accompanied by environmental policies and strict environmental protection rules. Some of the defenders of sustainable development have supported free trade but with the inclusion of restrictions in multilateral negotiations so as to control the degradation of natural resources.

Freer Trade, Protected Environment

Freer Trade, Protected Environment PDF Author: Carlisle Ford Runge
Publisher: Council on Foreign Relations
ISBN:
Category : Business & Economics
Languages : en
Pages : 164

Book Description
C. Ford Runge, a leading expert on trade reform and environmental policy, explores the linkages between trade and environment, and compares trade rules and environmental standards. How can environmental harm be reduced and international trade be expanded with minimal detriment to the other? Runge examines actual cases and concludes with specific policy recommendations for the United States and the international community.

Environmental Impacts of a North American Free Trade Agreement

Environmental Impacts of a North American Free Trade Agreement PDF Author: Gene M. Grossman
Publisher:
ISBN:
Category : Environmental impact analysis
Languages : en
Pages : 72

Book Description
In general, a reduction in trade barriers will affect the environment by expanding the scale of economic activity, by altering the composition of economic activity and by initiating a change in the techniques of production. We present empirical evidence to assess the relative magnitudes of these three effects as they apply to further trade liberalization in Mexico. We first use comparable measures of three air pollutants in a cross-section of urban areas located in 42 countries to study the relationship between air quality and economic growth. We find for two pollutants (sulphur dioxide and 'smoke') that concentrations increase with per capita GDP at low levels of national income, but decrease with GDP growth at higher levels of income. We then study the determinants of the industry pattern of US imports from Mexico and of value added by Mexico's maquiladora sector. We investigate whether the size of pollution abatement costs in US industry influences the pattern of international trade and investment. Finally, we use the results from a computable general equilibrium model to study the likely compositional effect of a North American Free Trade Agreement (NAFTA) on pollution in Mexico.

Trade and the Environment

Trade and the Environment PDF Author: Brian R. Copeland
Publisher: Princeton University Press
ISBN: 1400850703
Category : Business & Economics
Languages : en
Pages : 305

Book Description
Nowhere has the divide between advocates and critics of globalization been more striking than in debates over free trade and the environment. And yet the literature on the subject is high on rhetoric and low on results. This book is the first to systematically investigate the subject using both economic theory and empirical analysis. Brian Copeland and Scott Taylor establish a powerful theoretical framework for examining the impact of international trade on local pollution levels, and use it to offer a uniquely integrated treatment of the links between economic growth, liberalized trade, and the environment. The results will surprise many. The authors set out the two leading theories linking international trade to environmental outcomes, develop the empirical implications, and examine their validity using data on measured sulfur dioxide concentrations from over 100 cities worldwide during the period from 1971 to 1986. The empirical results are provocative. For an average country in the sample, free trade is good for the environment. There is little evidence that developing countries will specialize in pollution-intensive products with further trade. In fact, the results suggest just the opposite: free trade will shift pollution-intensive goods production from poor countries with lax regulation to rich countries with tight regulation, thereby lowering world pollution. The results also suggest that pollution declines amid economic growth fueled by economy-wide technological progress but rises when growth is fueled by capital accumulation alone. Lucidly argued and authoritatively written, this book will provide students and researchers of international trade and environmental economics a more reliable way of thinking about this contentious issue, and the methodological tools with which to do so.

Free Trade and the Environment

Free Trade and the Environment PDF Author: Scott Vaughan
Publisher:
ISBN:
Category : Environmental impact analysis
Languages : en
Pages : 44

Book Description


Assessing the Environmental Effects of Trade Liberalisation Agreements

Assessing the Environmental Effects of Trade Liberalisation Agreements PDF Author: Organisation for Economic Co-operation and Development
Publisher: OECD Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 376

Book Description
This conference proceedings examines how to assess the environmental effects of trade liberalisation agreements.