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Richer and cleaner--At others' expense?

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Author Info
Fæhn, Taran
Bruvoll, Annegrete

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Abstract

In rich economies emissions of many pollutants tend to grow at a slower rate than GDP. This could be a result of shifting comparative advantages. If so, net imports of dirty products to these economies will increase and rather than reduced, emissions will be relocated to other countries. In this paper we investigate if decoupling in a rich, open economy coincides with such pollution leakages abroad. Based on historical observations and model projections, we find little evidence to support this hypothesis. Historically, decoupling coincides with falling pollution leakages. Projections over a period of decades indicate a weakening of the decoupling, but that leakages will increase.

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File URL: http://www.sciencedirect.com/science/article/B6VFJ-4V34D5J-1/2/28528719ffbfe988767b08e2893d80ac
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Publisher Info
Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 31 (2009)
Issue (Month): 2 (May)
Pages: 103-122
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Handle: RePEc:eee:resene:v:31:y:2009:i:2:p:103-122

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Web page: http://www.elsevier.com/locate/inca/505569

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Keywords: Pollution leakage Carbon leakage Environmental Kuznets curve Dynamic computable general equilibrium model;

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References listed on IDEAS
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  1. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September. [Downloadable!] (restricted)
  2. Stina Hökby & Tore Söderqvist, 2003. "Elasticities of Demand and Willingness to Pay for Environmental Services in Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(3), pages 361-383, November. [Downloadable!] (restricted)
  3. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January. [Downloadable!] (restricted)
  4. Annegrete Bruvoll, Taran Fæhn and Birger Strøm, 2003. "Quantifying Central Hypotheses on Environmental Kuznets Curves for a Rich Economy: A Computable General Equilibrium Study," Discussion Papers 341, Research Department of Statistics Norway. [Downloadable!]
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  5. Mody, Ashoka & Roy, Subhendu & Wheeler, David & Dasgupta, Susmita, 1995. "Environmental regulation and development : a cross-country empirical analysis," Policy Research Working Paper Series 1448, The World Bank. [Downloadable!]
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  6. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May. [Downloadable!] (restricted)
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  7. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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  8. Henry D. Jacoby & Richard S. Eckaus & A. Denny Ellerman & Ronald G. Prinn & David M. Reiner & Zili Yang, 1997. "CO2 Emissions Limits: Economic Adjustments and the Distribution of Burdens," The Energy Journal, International Association for Energy Economics, vol. 18(3), pages 31-58.
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