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International Trade in Used Vehicles: The Environmental Consequences of NAFTA

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  • Lucas W. Davis
  • Matthew E. Kahn

Abstract

Since trade restrictions were eliminated in 2005, Mexico has imported over 2.5 million used vehicles from the United States. Using a unique, vehicle-level dataset, we find that traded vehicles are dirtier than the stock of vehicles in the United States and cleaner than the stock in Mexico, so when a vehicle is traded from the United States to Mexico average vehicle emissions per mile tend to decrease in both countries. Overall, however, the evidence suggests that trade has increased total lifetime emissions, primarily because of low vehicle retirement rates in Mexico. (JEL F13, F14, L62, O13, O19, Q53, Q56)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Economic Policy.

Volume (Year): 2 (2010)
Issue (Month): 4 (November)
Pages: 58-82

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Handle: RePEc:aea:aejpol:v:2:y:2010:i:4:p:58-82

Note: DOI: 10.1257/pol.2.4.58
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Relive the 1970s? You Can See Your Old Car in Caracas
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-12-13 15:48:00
  2. Does Free Trade Reduce the Female/Male Wage Gap?
    by Matthew Kahn in Environmental and Urban Economics on 2012-07-14 04:47:00
  3. GHG Emissions Growth in LDCs and the Introduction of the $3,000 Nissan
    by Matthew E. Kahn in The Reality-Based Community on 2012-10-02 15:28:19
  4. Mexico as a Lead Pollution Haven
    by Matthew E. Kahn in Legal Planet on 2013-02-09 16:05:09
  5. E-Waste and International Gains to Trade in Used Durables
    by Matthew Kahn in Environmental and Urban Economics on 2013-03-19 14:35:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Lenski, Shoshannah M. & Keoleian, Gregory A. & Moore, Michael R., 2013. "An assessment of two environmental and economic benefits of ‘Cash for Clunkers’," Ecological Economics, Elsevier, vol. 96(C), pages 173-180.
  2. Lawrence Goulder & Mark Jacobsen & Arthur van Benthem, 2009. "Unintended Consequences from Nested State & Federal Regulations: The Case of the Pavley Greenhouse-Gas-per-Mile Limits," Discussion Papers 08-049, Stanford Institute for Economic Policy Research.
  3. Gibson, Matthew, 2014. "Dirty and perverse: regulation-induced pollution substitution," University of California at San Diego, Economics Working Paper Series qt6tn7t0wv, Department of Economics, UC San Diego.
  4. Lawrence H. Goulder & Mark R. Jacobsen & Arthur A. van Benthem, 2009. "Unintended Consequences from Nested State & Federal Regulations: The Case of the Pavley Greenhouse-Gas-per-Mile Limits," NBER Working Papers 15337, National Bureau of Economic Research, Inc.
  5. Lucas W. Davis & Alan Fuchs & Paul J. Gertler, 2012. "Cash for Coolers," NBER Working Papers 18044, National Bureau of Economic Research, Inc.
  6. Davis, Lucas W., 2011. "The Effects Of Preferential Vat Rates Near International Borders: Evidence From Mexico," National Tax Journal, National Tax Association, vol. 64(1), pages 85-104, March.
  7. Mark R. Jacobsen & Arthur A. van Benthem, 2013. "Vehicle Scrappage and Gasoline Policy," NBER Working Papers 19055, National Bureau of Economic Research, Inc.

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