Is Free Trade Good for the Environment?

Werner Antweiler, Brian Copeland () and M. Scott Taylor

No 6707, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper sets out a theory of how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade's impact on pollution into scale, technique, and composition effects and then examine this theory using data on sulfur dioxide concentrations when it alters the composition, and hence the pollution intensity, of national output. Our estimates of the associated technique and scale efforts created by trade imply a net reduction in pollution from these sources. Combining our estimates of scale, composition, and technique efforts yields a somewhat surprising conclusion: freer trade appears to be good for the environment.

JEL-codes: F1 Q00 (search for similar items in EconPapers)
Date: 1998-08
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (66)

Published as Antweiler, Werner, Brian R. Copeland and M. Scott Taylor. "Is Free Trade Good For The Environment?," American Economic Review, 2001, v91(4,Sep), 877-908.

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