Is natural openness or trade policy good for the environment?

Steven Yamarik () and Sucharita Ghosh

Environment and Development Economics, 2011, vol. 16, issue 6, 657-684

Abstract: In this paper, we estimate the individual effects of natural openness and trade policy on air pollution. Natural openness is the component of the trade share (imports and exports as a percentage of GDP) attributable to population, geography and factor endowment differences. We find that natural openness reduces air pollution, while trade policy has a limited impact. The implication is that ‘natural’ geographic and endowment differences play a more important role than deliberate trade policy decisions in explaining the trade and environment link.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:cup:endeec:v:16:y:2011:i:06:p:657-684_00

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