How does Japanese compliance with the Kyoto Protocol affect environmental productivity in China and Japan?

Shigemi Kagawa

Structural Change and Economic Dynamics, 2008, vol. 19, issue 2, pages 173-188

Abstract: The present paper empirically investigates whether competitive pressures and Japanese compliance with the Kyoto Protocol will turn China into a pollution haven. We also analyze how the bilateral division of commodity production stimulates eco-efficiencies (i.e. environmental productivities) in Japan and China and how eco-efficiencies in the respective countries affect each other. Empirical results revealed that competitive pressure and Japanese compliance with the Kyoto Protocol did not contribute to turning China into a pollution haven. We also find that if we focus on national eco-efficiencies, China and Japan are unable to develop a mutually beneficial relationship between the eco-efficiencies in both countries.

Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:eee:streco:v:19:y:2008:i:2:p:173-188

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