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The environmental consequences of trade: Evidence from subnational trade flows

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  • Chintrakarn, Pandej
  • Millimet, Daniel L.

Abstract

The debate over the environmental consequences of free trade is not only quite heated, but also entails significant policy ramifications. The empirical difficulty with assessing this relationship is the fact that trade and environmental quality may be jointly determined, making it difficult to infer a causality. Recently, cross-sectional analysis at the country level has made use of exogenous determinants of trade to identify the causal effect of trade on the environment, finding moderate evidence of a beneficial impact of expanded trade on the environmental quality. Given the stakes involved, we revisit this finding using subnational data on ‘trade’ flows across US states and several measures of pollution. Our findings are striking, providing further evidence of the beneficial impact of trade.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 52 (2006)
Issue (Month): 1 (July)
Pages: 430-453

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Handle: RePEc:eee:jeeman:v:52:y:2006:i:1:p:430-453

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Web page: http://www.elsevier.com/locate/inca/622870

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References

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Citations

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Cited by:
  1. Baek, Jungho & Cho, Yongsung & Koo, Won W., 2009. "The environmental consequences of globalization: A country-specific time-series analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2255-2264, June.
  2. Daniel Millimet & Rusty Tchernis, 2006. "On the Specification of Propensity Scores: with an Application to the WTO-Environment Debate," Caepr Working Papers 2006-013, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
  3. Michida, Etsuyo & Nishikimi, Koji, 2007. "North-South trade and industry-specific pollutants," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 229-243, September.
  4. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
  5. Cole, Matthew A. & Elliott, Robert J.R. & Khemmarat, Khemrutai, 2013. "Local exposure to toxic releases: Examining the role of ethnic fractionalization and polarisation," Ecological Economics, Elsevier, vol. 93(C), pages 249-259.
  6. Chintrakarn, Pandej & Millimet, Daniel, 2006. "Subnational Trade Flows and State-Level Energy Intensity," Departmental Working Papers 0601, Southern Methodist University, Department of Economics.
  7. Managi, Shunsuke, 2012. "Trade, economic growth and environment," IDE Discussion Papers 342, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  8. Alassane DRABO, 2011. "Agricultural primary commodity export and environmental degradation: what consequences for population’s health?," Working Papers 201110, CERDI.
  9. Mills Busa, Julianne H., 2013. "Dynamite in the EKC tunnel? Inconsistencies in resource stock analysis under the environmental Kuznets curve hypothesis," Ecological Economics, Elsevier, vol. 94(C), pages 116-126.
  10. Kellenberg, Derek K., 2008. "A reexamination of the role of income for the trade and environment debate," Ecological Economics, Elsevier, vol. 68(1-2), pages 106-115, December.
  11. Gabriele Standardi & Francesco Bosello & Fabio Eboli, 2014. "A Sub-national CGE Model for Italy," Working Papers 2014.04, Fondazione Eni Enrico Mattei.
  12. MANAGI Shunsuke & HIBIKI Akira & TSURUMI Tetsuya, 2008. "Does Trade Liberalization Reduce Pollution Emissions?," Discussion papers 08013, Research Institute of Economy, Trade and Industry (RIETI).
  13. Kellenberg, Derek, 2012. "Trading wastes," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 68-87.

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