Industrial Pollution Abatement: The Impact on Balance of Trade

H. David Robison

Canadian Journal of Economics, 1988, vol. 21, issue 1, 187-99

Abstract: This paper uses an ex post, partial-equilibrium framework to measure the impact of marginal changes in industrial p ollution abatement costs on the U.S. balance of trade in general, and balance of trade with Canada in particular. The impacts are found to be negative for most industries, growing with trade volume, and smal l relative to domestic consumption. In addition, some evidence is fou nd that pollution control programs have changed the U.S. comparative advantage such that more high-abatement-cost goods are imported and m ore low-abatement-cost goods are exported.

Date: 1988
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