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Environmental Pollution, The Terms Of Trade And Balance Of Payments Of The United States

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  • Stephen P. Magee
  • William Freithaler Ford

Abstract

This paper uses some partial equilibrium models to assess the possible theoretical effects of pollution abatement on the terms of trade and the trade balance of the United States. The results depend on the sectoral location of the pollution (export or import‐competing) and on the type of pollution (production or consumption). The U. S. will experience a deterioration in its trade balance in combatting production pollution and probably an increase in the abatement of consumption pollution. For import‐consumption pollution and export‐production pollution, abatement results in an increase in the U. S. terms of trade and welfare while the opposite occurs for import‐production and export‐consumption pollution. It is possible that the less developed countries have been bearing part of the burden for unabated pollution in the United States.

Suggested Citation

  • Stephen P. Magee & William Freithaler Ford, 1972. "Environmental Pollution, The Terms Of Trade And Balance Of Payments Of The United States," Kyklos, Wiley Blackwell, vol. 25(1), pages 101-118, February.
    • Handle: RePEc:bla:kyklos:v:25:y:1972:i:1:p:101-118
    DOI: 10.1111/j.1467-6435.1972.tb02573.x
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    Cited by:

    1. Yiyi Ju, 2017. "Tracking the PM2.5 inventories embodied in the trade among China, Japan and Korea," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-16, December.
    2. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
    3. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    4. Pelkmans, Jacques, 2003. "European Integration, Deepening and Widening Economic Analysis," Conference papers 331166, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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