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On The Pollution Content of China’s Trade: Clearing the Air?

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  • Chris Milner
  • Fangya Xu

Abstract

This study compares alternative measures of the potential and actual pollution content of China’s trade using an environmental I-O methodology. Using the conventional, potential measure adopted by other researchers, we find that China ‘saves’ on local environmental resources by exporting goods that on average embody less pollution content than imports would if they were produced locally in China. A less positive, assessment of the environmental impact of China’s trade emerges, however, if the assumption of a common technology for producing exports and imports is dropped. Using an actual pollution content methodology for measuring the pollutants embodied in the production of both exports and imports, we find that China is actually a net exporter of embodied pollutants.

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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 09/19.

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Handle: RePEc:not:notgep:09/19

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Keywords: Trade; pollution content; China;

References

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  14. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
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  16. Manuel Cabral & Rod E. Falvey & Chris R. Milner, 2006. "The Skill Content of Inter- and Intra-Industry Trade: Evidence for the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 546-566, October.
  17. Hitoshi Hayami & Masao Nakamura & Mikio Suga & Kanji Yoshioka, 1997. "Environmental Management in Japan: Applications of Input-Output Analysis to the Emission of Global Warming Gases," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 195-208.
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