Pollution Haven Hypothesis or Factor Endowment Hypothesis: Theory and Empirical Examination for the US and China
AbstractThis paper examines how free international trade affects the environment in the developed and less developed worlds. Using input-output techniques, tests of the pollution haven hypothesis (PHH) and the factor endowment hypothesis (FEH) for the US and China were empirically carried out. We found that China gains and the US lose in terms of CO2, SO2 and NOx emissions from increased trade, and the US is not exporting capital intensive goods. Thus both the PHH and the FEH are rejected, which implies that explaining the trade of pollutants remains an unresolved puzzle.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp292.
Date of creation: Mar 2006
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More information through EDIRC
International trade; Environment; Pollution haven; Factor endowment; Inputoutput analysis.;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
- Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
- D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-25 (All new papers)
- NEP-CNA-2006-03-25 (China)
- NEP-ENE-2006-03-25 (Energy Economics)
- NEP-ENV-2006-03-25 (Environmental Economics)
- NEP-INT-2006-03-25 (International Trade)
- NEP-RES-2006-03-25 (Resource Economics)
- NEP-SEA-2006-03-25 (South East Asia)
- NEP-TRA-2006-03-25 (Transition Economics)
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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