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Free Trade and Pollution in the Manufacturing Industry in Mexico : A Verification of the Inverse Kuznets Curve at a State Level

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  • Elena Catalina Jáuregui Nolen

    ()
    (London School of Economics and Political Science)

  • José de Jesús Salazar Cantú

    ()

  • Raymundo Cruz Rodríguez Guajardo

    ()

  • Héctor González García

    ()

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    Abstract

    There has been a long debate about the effects that free trade has on pollution. Most empirical analysis on this topic has focused at the national level. The objective of this study is to see if there is a relationship between the pollution generated by the manufacturing industry in each of Mexico’s 32 states and the North American Free Trade Agreement (NAFTA). This was done via panel data regression models using information on pollution, income, and degree of trade from each of the states for the years 1993 and 2000. The pollution index level was constructed using the Industrial Pollution Projection System from the World Bank. In general we found a positive relationship between trade liberalization and pollution caused by manufacturing. Furthermore, we found that income and pollution follow the relationship expressed in the Environmental Kuznets Curve.

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    Bibliographic Info

    Article provided by Universidad Autonoma de Nuevo Leon, Facultad de Economia in its journal Ensayos Revista de Economia.

    Volume (Year): XXIX (2010)
    Issue (Month): 2 (November)
    Pages: 99-119

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    Handle: RePEc:ere:journl:v:xxix:y:2010:i:2:p:99-119

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    Related research

    Keywords: Free Trade; Pollution in manufacturing industry; Environmental Kuznets Curve; State-level data;

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    1. Steininger, Karl, 1994. "Reconciling trade and environment: towards a comparative advantage for long-term policy goals," Ecological Economics, Elsevier, Elsevier, vol. 9(1), pages 23-42, January.
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