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International Trade and the Environment: A Framework for Analysis


  • M. Scott Taylor

    (University of Calgary)

  • Brian R. Copeland


This paper sets out a general equilibrium pollution and trade model to provide a framework for examination of the trade and environment debate. The model contains as special cases a canonical pollution haven model as well as the standard Heckscher-Ohlin-Samuelson factor endowments model. We draw quite heavily from trade theory, but develop a simple pollution demand and supply system featuring marginal abatement cost and marginal damage schedules familiar to environmental economists. We have intentionally kept the model simple to facilitate extensions examining the environmental consequences of growth, the impact of trade liberalization, and strategic interaction between countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • M. Scott Taylor & Brian R. Copeland, "undated". "International Trade and the Environment: A Framework for Analysis," Working Papers 2014-71, Department of Economics, University of Calgary, revised 29 Sep 2014.
  • Handle: RePEc:clg:wpaper:2014-71

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    References listed on IDEAS

    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    2. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    3. Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
    4. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
    5. Copeland, Brian R. & Taylor, M. Scott, 2005. "Free trade and global warming: a trade theory view of the Kyoto protocol," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 205-234, March.
    6. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    7. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
    8. Don Fullerton & Gilbert E. Metcalf, 1997. "Environmental Taxes and the Double Dividends Hypothesis: Did You Really Expect Something for Nothing?," Discussion Papers Series, Department of Economics, Tufts University 9706, Department of Economics, Tufts University.
    9. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-737, September.
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    Cited by:

    1. Samina Khalil & Zeeshan Inam, 2006. "Is Trade Good for Environment? A Unit Root Cointegration Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 1187-1196.
    2. Rafindadi, Abdulkadir Abdulrashid, 2016. "Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1209-1225.
    3. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
    4. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    5. Marc Germain & Philippe Monfort & Thierry Bréchet, 2006. "Allocation des efforts de dépollution dans des économies avec spécialisation internationale," Revue économique, Presses de Sciences-Po, vol. 57(2), pages 219-239.
    6. Wang, Shu-Hong & Song, Ma-Lin, 2014. "Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011," Energy Policy, Elsevier, vol. 74(C), pages 395-405.
    7. Yang, Boqiong & Brosig, Stephan & Chen, Jianguo, 2013. "Environmental Impact of Foreign vs. Domestic Capital Investment in China," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 245-271.
    8. Jeffrey A. Frankel & Andrew K. Rose, 2005. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 85-91, February.
    9. Gallegos, Alberto & Régibeau, Pierre, 2004. "Managed Trade, Trade liberalisation and Local Pollution," Economics Discussion Papers 8877, University of Essex, Department of Economics.
    10. Pierpaolo Battigalli & Giovanni Maggi, 2003. "International agreements on product standard: an incomplete contracting theory," NBER Working Papers 9533, National Bureau of Economic Research, Inc.
    11. Jeffrey A. Frankel, 2003. "The Environment and Globalization," NBER Working Papers 10090, National Bureau of Economic Research, Inc.
    12. Katrin Millock & Natalia Zugravu & Gérard Duchene, 2008. "The Factors Behind CO2 Emission Reduction in Transition Economies," Working Papers 2008.58, Fondazione Eni Enrico Mattei.
    13. Natalia Zugravu-Soilita, 2016. "Trade in environmental goods and sustainable development: What are we learning from the transition economies’ experience?," Working Papers 2016.16, FAERE - French Association of Environmental and Resource Economists.
    14. Thierry, BRECHET & Marc, GERMAIN & Philippe, MONFORT, 2003. "Spécialisation internationale et partage de la charge en matière de réduction de la pollution," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2003019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    15. Tiwari, Aviral Kumar & Shahbaz, Muhammad & Adnan Hye, Qazi Muhammad, 2013. "The environmental Kuznets curve and the role of coal consumption in India: Cointegration and causality analysis in an open economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 519-527.
    16. Frankel, Jeffrey, 2008. "Global Environmental Policy and Global Trade Policy," Working Paper Series rwp08-058, Harvard University, John F. Kennedy School of Government.
    17. Faridul, Islam & Muhammad, Shahbaz, 2012. "Is There an Environmental Kuznets Curve for Bangladesh?," MPRA Paper 38490, University Library of Munich, Germany, revised 30 Apr 2012.
    18. Michida, Etsuyo, 2005. "Management for a Variety of Environmental Pollution and North-South Trade," IDE Discussion Papers 23, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • H4 - Public Economics - - Publicly Provided Goods

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