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Is environmental goods trade beneficial for the environmental performance of the concerned countries?

Author

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  • Huong Thi Thu Tran

    (Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia)

  • Kaliappa Kalirajan

Abstract

This paper examines the impacts of environmental goods (EGs) trade on environmental performance of the concerned countries. The EGs have been disaggregated into renewable energy, environmental monitoring analysis and assessment equipment, and environmental protection and environmental preferable products. Environmental performance has been classified into environmental health and ecosystem vitality. The empirical analysis is carried out using data from the Asia Pacific Economic Cooperation (APEC) member countries covering the period of 2007-2014. The empirical results suggest positive impacts of EGs exports and imports on environmental performance. While exports of environmental goods have significant beneficial impacts on environmental health measure, the impact on ecosystem vitality measure is not impressive. These results support the reduction in barriers on EGs trade, which has policy implications towards increasing the technology, awareness, and environmental-regulation effects, and minimizing the scale effect of EGs exports.

Suggested Citation

  • Huong Thi Thu Tran & Kaliappa Kalirajan, 2018. "Is environmental goods trade beneficial for the environmental performance of the concerned countries?," CCEP Working Papers 1808, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:ccepwp:1808
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    File URL: https://ccep.crawford.anu.edu.au/sites/default/files/publication/ccep_crawford_anu_edu_au/2023-07/ccep_1808.pdf
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    More about this item

    JEL classification:

    • 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
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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