The Effects Of Trade Liberalization On The Environment: An Empirical Study
AbstractWe seek to contribute to the emerging economic theory on trade, the environment and development. Using panel data across countries, econometric models are estimated to predict the effects of openness on organic water pollutant (BOD) and carbon dioxide (CO2) emissions. Results indicate that freer trade significantly increases emissions of both pollutants, thus reducing environmental quality. Moreover, the panel nature of the data allows heterogeneity across countries to be controlled, so that comparisons can be made of how different national characteristics influence the environmental impact of freer trade. By testing the effects of democratic versus autocratic governance, it is found that while greater democracy can induce significant reductions in BOD emissions as openness increases, it may also lead to increased CO2 levels. Meanwhile, by testing for and failing to reject the pollution haven hypothesis, it is suggested that environmental gains from openness in relatively rich countries may be coming at the expense of environmental degradation in poorer countries.
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Bibliographic InfoPaper provided by Canadian Agricultural Economics Society in its series Annual Meeting, July 6-8, 2005, San Francisco, CA with number 34157.
Date of creation: 2005
Date of revision:
Environmental Economics and Policy; International Relations/Trade;
Other versions of this item:
- McCarney, Geoffrey R. & Adamowicz, Wiktor L., 2006. "The Effects of Trade Liberalization of the Environment: An Empirical Study," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25297, International Association of Agricultural Economists.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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