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Trade in a 'Green Growth' Development Strategy Global Scale Issues and Challenges

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  • Jaime de Melo

    (University of Geneva and FERDI)

Abstract

The paper surveys the state of knowledge about the trade-related environmental consequences of a country’s development strategy along three channels: (i) direct trade-environment linkages (overexploitation of natural resources and trade-related transport costs);(ii) ‘virtual trade’ in emissions resulting from production activities; (iii) the product mix attributes of a ‘green-growth’ strategy (environmentally preferable products and goods for environmental management). Main conclusions are the following. Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries have led to significant ‘pollution havens’. Trade policies to ‘level the playing field’ would be ineffective and result in destructive conflicts in the WTO. Lack of progress at the Doha round suggests the need to modify the current system of global policy making.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2012.47.

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Date of creation: Jun 2012
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Handle: RePEc:fem:femwpa:2012.47

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Keywords: Environmental Goods; Natural Resources; Green Growth; Trade and Climate;

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  1. Michael Owen Moore, 2010. "Implementing Carbon Tariffs: A Fool's Errand?," Working Papers, The George Washington University, Institute for International Economic Policy 2010-02, The George Washington University, Institute for International Economic Policy.
  2. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 116(508), pages 1-20, 01.
  3. de Melo, Jaime & Mathys, Nicole Andréa, 2010. "Trade and Climate Change: The Challenges Ahead," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8032, C.E.P.R. Discussion Papers.
  4. Huifang Tian & John Whalley, 2010. "The Potential Global and Developing Country Impacts of Alternative Emission Cuts and Accompanying Mechanisms for the Post Copenhagen Process," NBER Working Papers 16090, National Bureau of Economic Research, Inc.
  5. Aichele, Rahel & Felbermayr, Gabriel, 2010. "Kyoto and the carbon content of trade," FZID Discussion Papers 10-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  6. Patrick Messerlin, 2011. "Climate, Trade and Water: A ‘Grand Coalition’?," The World Economy, Wiley Blackwell, vol. 34(11), pages 1883-1910, November.
  7. Anca D. Cristea & David Hummels & Laura Puzzello & Misak G. Avetisyan, 2011. "Trade and the Greenhouse Gas Emissions from International Freight Transport," NBER Working Papers 17117, National Bureau of Economic Research, Inc.
  8. Bulte, E.H. & Barbier, E., 2005. "Trade and renewable resources in a second best world: An overview," Open Access publications from Tilburg University urn:nbn:nl:ui:12-169687, Tilburg University.
  9. Christa N. Brunnschweiler & Erwin H. Bulte, 2006. "The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings," CER-ETH Economics working paper series 06/61, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  10. Jean-Marie Grether & Nicole Andréa Mathys & Jaime de Melo, 2012. "Unravelling the worldwide pollution haven effect," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 21(1), pages 131-162, December.
  11. Sambit Bhattacharyya & Roland Hodler, 2008. "Natural Resources, Democracy and Corruption," OxCarre Working Papers, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford 020, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  12. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
  13. Jean-Marie Grether & Nicole Mathys & Jaime de Melo, 2009. "Scale, Technique and Composition Effects in Manufacturing SO 2 Emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 43(2), pages 257-274, June.
  14. Carolyn Fischer, 2010. "Does Trade Help or Hinder the Conservation of Natural Resources?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 103-121, Winter.
  15. Paul Brenton & Gareth Edwards-Jones & Michael Friis Jensen, 2009. "Carbon Labelling and Low-income Country Exports: A Review of the Development Issues," Development Policy Review, Overseas Development Institute, vol. 27(3), pages 243-267, 05.
  16. Janina Ketterer & Jana Lippelt & Giovanni Ruta, 2011. "Trade in Virtual Carbon," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 101-103, 07.
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