Economics at your fingertips  

Trade Liberalization, Consumption Shifting and Pollution: Evidence from Mexico's Used Vehicle Imports

Chen Liang, Garcia-Medina Cecilia and Wan Rui

No 2022-02, Working Papers from Banco de México

Abstract: This paper develops a model of used vehicle trade between countries with different environmental regulations regarding vehicle emissions. We show that the US, given its strict environmental regulations, has incentives to export used vehicles to Mexico, which impacts air pollution emissions caused by automobile driving in Mexico. Using a unique database on vehicle registration in Mexico and imports after the NAFTA enactment, we find that Mexico's used vehicle imports reduced average pollution emissions generated by vehicles, mainly due to the "technique effect" -differences in emissions of vehicles of comparable model and age between those that operate in the US before being imported (that emit less pollutants) and those operating in Mexico.

Keywords: Trade Liberalization; Used Vehicles; Pollution Emissions; Technique Effect (search for similar items in EconPapers)
JEL-codes: F13 L62 Q51 Q56 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-ban, nep-ene, nep-env, nep-int and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... -786A5FDD4B52%7D.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from Banco de México Contact information at EDIRC.
Bibliographic data for series maintained by Subgerencia de desarrollo de sistemas ().

Page updated 2023-01-07
Handle: RePEc:bdm:wpaper:2022-02