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Dynamic Change in the Export Technology Structure of China’s Environmental Goods and Its International Comparison

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  • Xuping Cao

    (School of Economics and Management, Changshu Institute of Technology, Changshu 215500, China
    School of Business, University of Wisconsin-Eau Claire, Eau Claire, WI 54702, USA
    Suzhou Agricultural Modernization Research Center, Changshu 215500, China)

  • Nancy Hanson-Rasmussen

    (School of Business, University of Wisconsin-Eau Claire, Eau Claire, WI 54702, USA)

Abstract

Growing natural disaster intensity, ocean warming, air quality alerts, and a desire to emphasize sustainable practice has prompted countries to payincreased attention to the development of environmental industries. This has led to trade in environmental goods (EGs) and a need for export technology research. The purpose of this paper is to measure the evolution of the technological structure of China’s export EGs and its position in the international industrial value chain. Based on the 2012 Asia-Pacific Economic Cooperation (APEC) EGs list and United Nations Comtrade (COMTRADE) data, this study uses the technical complexity index to empirically calculate the technology structure and level changes of China’s EGs exports from 2007 to 2016. The results are then compared with those of the Asia-Pacific region and the world’s major exporters of EGs. Additionally, this study proposes a method called “Equalization Technology Classification” that divides all EGs into five technical levels: high, medium-high, medium, medium-low, and low. The research finds that (1) China’s EGs exports are predominately of medium-low technical complexity, and while the proportion of exported goods with high technical complexity is very low, the export technology structure is constantly being optimized. (2) Compared with Singapore, the United States, and the European Union, the overall technical level of China’s exported EGs is lagging behind. (3) The overall technical level of exported EGs in major exporting countries is rapidly increasing but is especially impressive in South Korea and China, where growth ranks first and second in the world, respectively.

Suggested Citation

  • Xuping Cao & Nancy Hanson-Rasmussen, 2018. "Dynamic Change in the Export Technology Structure of China’s Environmental Goods and Its International Comparison," Sustainability, MDPI, vol. 10(10), pages 1-14, September.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3508-:d:172936
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    References listed on IDEAS

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    1. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    2. Sanjaya Lall (QEH), John Weiss and Jinkang Zhang, "undated". "The 'Sophistication' Of Exports: A New Measure Of Product Characteristics," QEH Working Papers qehwps123, Queen Elizabeth House, University of Oxford.
    3. Wan, Rui & Nakada, Minoru & Takarada, Yasuhiro, 2018. "Trade liberalization in environmental goods," Resource and Energy Economics, Elsevier, vol. 51(C), pages 44-66.
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    Cited by:

    1. Shiguang Peng & Le Wang, 2022. "A Survival Analysis of China’s Trade of Environmental Goods," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    2. Jingjing Wang & Yan Zhang & Zeeshan Mustafa & Maurizio Canavari, 2022. "Changes in Agri-Food Export Competitiveness Based on the Sophistication Analysis: The Case of Xinjiang, China," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    3. Suisui Chen & Xintian Liu & Shuhong Wang & Peng Wang, 2023. "Regional Corruption, Foreign Trade, and Environmental Pollution," Sustainability, MDPI, vol. 15(1), pages 1-17, January.

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