Trade Restrictiveness and Pollution

Nancy Chau, Rolf Fare and Shawna Grosskopf

No 127016, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: This paper proposes a trade restrictiveness indicator that explicitly incorporates environmental externalities. The index employs directional distance functions and use indicators (i.e. differences rather than ratios) modified to account for and evaluate efficiency changes in the face of simultaneous and multi-dimensional trade and environmental policy reforms. The index is made up of two components, one for production and one for consumption. Our overall trade restrictiveness indicator is accordingly the difference of the two. The properties of the indicator are developed and discussed together with its estimation.

Keywords: Environmental Economics and Policy; International Development (search for similar items in EconPapers)
Pages: 27
Date: 2007
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Citations: View citations in EconPapers (9)

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Journal Article: Trade Restrictiveness and Pollution (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:127016

DOI: 10.22004/ag.econ.127016

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