A Note on the Empirical Relationship Between Trade, Growth and the Environment
AbstractThis note reestimates Grossman and Krueger’s (1993) SO2 emissions regression including regressors to capture the effects of scale, trade and trade policy. Several new results are obtained. Increases in economic activity have a negative effect on the environment separate from changes in per capita income, whose relation to the environment is now positive and linear not inverted-U shaped. The trade policy measure is not significant, but its effect is ambiguous a priori. Finally, in line with specialization patterns based on traditional sources of comparative advantage, pollution rises with the capital abundance of a country (since this favors capital-intensive and generally dirtier industries) and falls with increases in labor and land abundance.
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Bibliographic InfoPaper provided by Department of Economics, W. P. Carey School of Business, Arizona State University in its series Working Papers with number 2132836.
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Other versions of this item:
- Lewis R. Gale & Jose A. Mendez, . "A Note on the Empirical Relationship Between Trade, Growth and the Environment," Working Papers 96/3, Arizona State University, Department of Economics.
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F1 - International Economics - - Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-14 (All new papers)
- NEP-ENE-2005-05-14 (Energy Economics)
- NEP-INT-2005-05-14 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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