Does Trade Liberalization Reduce Pollution Emissions?

Shunsuke Managi, Akira Hibiki and Tetsuya Tsurumi

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Literature on trade liberalization, economic development, and the environment is largely inconclusive about the environmental consequences of trade. This study treats trade and income as endogenous and estimates the overall impact of trade openness on environmental quality using the instrumental variables technique. Trade is found to benefit the environment using a globally representative sample. A 1% increase in trade openness causes a decrease of 0.344%, 0.754%, and 1.909% for SO2, CO2, and BOD emissions, respectively, in the long term. Our results also show composition and scale-technique effects contribute differently to the overall effect in the short and long term.

Pages: 37 pages
Date: 2008-05
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-int and nep-res
References: Add references at CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/08e013.pdf (application/pdf)

Related works:
Journal Article: Does trade openness improve environmental quality? (2009)
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: https://EconPapers.repec.org/RePEc:eti:dpaper:08013

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().