Trade in a 'Green Growth' Development Strategy: Issues and Challenges

Jaime de Melo

No 9660, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper discusses the state of knowledge about the trade-related environmental consequences of a country?s development strategy along three channels: (i) direct trade-environment linkages (overexploitation of natural resources and trade-related transport costs);(ii) ?virtual trade? in emissions resulting from production activities; (iii) the product mix attributes of a ?green-growth? strategy (environmentally preferable products and goods for environmental management). Main conclusions are the following. Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries has led to significant ?pollution havens?. Trade policies to ?level the playing field? would be ineffective and result in destructive conflicts in the WTO. Lack of progress at the Doha round suggests the need to modify the current system of global policy making.

Keywords: Environmental goods; Green growth; Natural resources; Trade and climate (search for similar items in EconPapers)
JEL-codes: F18 Q56 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-env, nep-gro, nep-int and nep-res
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Journal Article: Trade in a “Green Growth” Development Strategy. Issues and Challenges (2014)
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