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International Trade and the Transfer of Environmental Costs and Benefits

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  • Hiro Lee
  • David Roland-Holst

Abstract

The environmental implications of international trade have come under intensified scrutiny in recent years, particularly with expanded interest in multilateralism, regionalism, and other negotiated trade regimes. The transfer of environmental effects, both positive and negative, is embodied in most trade patterns, particularly those which reflect technological hierarchy or other stratification by degree of economic modernization. Despite the emotional reaction these issues often arouse, the question of whether and to whom these transfers are beneficial or detrimental is a very complex one. In this paper, we use applied general equilibrium analysis to examine a well-established trade relationship between two diverse economies, Japan and Indonesia. Historically, it appears that their bilateral trade has conferred asymmetric environmental effects on the two countries, effecting a net transfer of some environmental costs from the former to the latter. In the light of this negative ... Les conséquences du commerce international sur l'environnement ont été examinées minutieusement et intensément au cours des dernières années, en particulier en raison de l'intérêt accru pour le multilatéralisme, le régionalisme et d'autres types d'échanges négociés. Le transfert des incidences, tant positives que négatives, sur l'environnement est inhérent à la plupart des schémas commerciaux, surtout ceux qui reflètent une technologie hiérarchique ou une stratification selon le niveau de modernisation économique. Malgré les réactions émotionnelles fréquemment déclenchées par ces problèmes, il est très difficile de préciser si, et pour qui, ces transferts sont bénéfiques ou néfastes. Dans ce document nous utilisons une analyse d'équilibre général pour examiner les relations commerciales bien établies entre deux éconormies différentes : celle du Japon et celle de l'Indonésie. Sur le plan historique, il apparaît que leurs échanges bilatéraux ont eu des effets environnementaux ...

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File URL: http://dx.doi.org/10.1787/854022818551
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 91.

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Date of creation: Dec 1993
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Handle: RePEc:oec:devaaa:91-en

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Cited by:
  1. Lee, Hiro & Roland-Holst, David, 1997. "The environment and welfare implications of trade and tax policy," Journal of Development Economics, Elsevier, Elsevier, vol. 52(1), pages 65-82, February.
  2. Gray, Denice & Krissoff, Barry & Tsigas, Marinos E., 1995. "Western Hemisphere Integration: Trade Policy Reform and Environmental Policy Harmonization," 1995: Economic Integration in the Western Hemisphere Symposium, June 7-9, 1995, San Jose, Costa Rica, International Agricultural Trade Research Consortium 50815, International Agricultural Trade Research Consortium.
  3. Xie, Jian & Saltzman, Sidney, 2000. "Environmental Policy Analysis: An Environmental Computable General-Equilibrium Approach for Developing Countries," Journal of Policy Modeling, Elsevier, Elsevier, vol. 22(4), pages 453-489, July.
  4. Savaþ Alpay, 1999. "What Do We Know About the Interactions Between Trade and the Environment? A Survey of the Literature," Departmental Working Papers, Bilkent University, Department of Economics 991, Bilkent University, Department of Economics.
  5. Al-Amin, Abul Quasem & Abdul Hamid, Jaafar & Chamhuri, Siwar, 2008. "Macroeconomic effects of carbon dioxide emission reduction: a computable general equilibrium analysis for Malaysia," MPRA Paper 8667, University Library of Munich, Germany.

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