The Impact of Environmental Measures on Trade and Innovation: Evidence from the WTO Environmental Database (EDB)

Francesco S. Bellelli () and Ankai Xu ()
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Ankai Xu: WTO

Environmental & Resource Economics, 2024, vol. 87, issue 10, No 3, 2629-2682

Abstract: Abstract This study explores the impact of environmental policies on trade and innovation, utilizing an expanded dataset sourced from the WTO Environmental Database (EDB). It makes two contributions to the literature: First, employing advanced text analysis algorithms, we extracted valuable information from the EDB, enhancing its usefulness for future research and policy analysis. Second, we leverage this augmented dataset to evaluate the impact of environmental measures on trade and green innovation. Our empirical findings suggest that environmental policies not only elevate demand for environmental goods and stimulate imports but also bolster competitiveness and amplify exports of environmental goods. Additionally, these policies appear to stimulate green innovation.

Keywords: Trade and environment; Environmental policies; Innovation; Climate change mitigation (search for similar items in EconPapers)
JEL-codes: F14 F18 O38 Q55 Q58 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10640-024-00898-3

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