IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/27694.html
   My bibliography  Save this paper

Environment and Trade: A Review of Theory and Issues

Author

Listed:
  • Xing, Yuqing
  • Kolstad, Charles

Abstract

This paper illustrates the major issues influencing interaction between environmental regulation and international trade by reviewing the empirical studies and theoretical results of the last 20 years. The second section of the paper discusses how environmental regulation distorts comparative advantage and specialization. The third part covers the impact of environmental regulation on the location of polluting industries. The fourth part covers transnational pollution and trade in wastes. The fifth section discusses major conflicts between trade policy and environmental policy. The final part addresses strategic environmental policy and international trade.

Suggested Citation

  • Xing, Yuqing & Kolstad, Charles, 1996. "Environment and Trade: A Review of Theory and Issues," MPRA Paper 27694, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27694
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/27694/1/MPRA_paper_27694.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
    2. Virginia D. McConnell & Robert M. Schwab, 1990. "The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry," Land Economics, University of Wisconsin Press, vol. 66(1), pages 67-81.
    3. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    4. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
    5. H. David Robison, 1988. "Industrial Pollution Abatement: The Impact on Balance of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 21(1), pages 187-199, February.
    6. Sartzetakis, Eftichios Sophocles & Constantatos, Christos, 1995. "Environmental Regulation and International Trade," Journal of Regulatory Economics, Springer, vol. 8(1), pages 61-72, July.
    7. Ulph, A., 1993. "Environmental policy and international trade when governments and producers act strategically," Discussion Paper Series In Economics And Econometrics 9318, Economics Division, School of Social Sciences, University of Southampton.
    8. Horst Siebert, 1977. "Environmental Quality And The Gains From Trade," Kyklos, Wiley Blackwell, vol. 30(4), pages 657-673, November.
    9. Merrifield, John D., 1988. "The impact of selected abatement strategies on transnational pollution, the terms of trade, and factor rewards: A general equilibrium approach," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 259-284, September.
    10. Markusen James R. & Morey Edward R. & Olewiler Nancy D., 1993. "Environmental Policy when Market Structure and Plant Locations Are Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 69-86, January.
    11. Carlo Carraro & Domenico Siniscalco, 1992. "Environmental innovation policy and international competition," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 183-200, March.
    12. Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April.
    13. Pethig, Rudiger, 1976. "Pollution, welfare, and environmental policy in the theory of Comparative Advantage," Journal of Environmental Economics and Management, Elsevier, vol. 2(3), pages 160-169, February.
    14. James A. Tobey, 1990. "The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test," Kyklos, Wiley Blackwell, vol. 43(2), pages 191-209, May.
    15. Siebert, Horst, 1977. "Environmental Quality and the Gains from Trade," Kyklos, Wiley Blackwell, vol. 30(4), pages 657-673.
    16. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    17. Arvind Subramanian, 1992. "Trade Measures for Environment: A Nearly Empty Box?," The World Economy, Wiley Blackwell, vol. 15(1), pages 135-152, January.
    18. McGuire, Martin C., 1982. "Regulation, factor rewards, and international trade," Journal of Public Economics, Elsevier, vol. 17(3), pages 335-354, April.
    19. Timothy J. Bartik, 2002. "The Effects of Environmental Regulation on Business Location in the United States," Book chapters authored by Upjohn Institute researchers, in: Wayne B. Gray (ed.),Economic Costs and Consequences of Environmental Regulation, pages 129-151, W.E. Upjohn Institute for Employment Research.
    20. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    21. Carl A. Pasurka JR, 1985. "Environmental Control Costs and U.S. Effective Rates of Protection," Public Finance Review, , vol. 13(2), pages 161-182, April.
    22. Whalley, John, 1991. "The Interface between Environmental and Trade Policies," Economic Journal, Royal Economic Society, vol. 101(405), pages 180-189, March.
    23. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Hoffmann & Chew-Ging Lee & Bala Ramasamy & Matthew Yeung, 2005. "FDI and pollution: a granger causality test using panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(3), pages 311-317.
    2. Laixun Zhao & Zhihao Yu & Yoshiko Onuma, 2005. "A theory of mutual migration of polluting firms," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 900-918, August.
    3. Ulph, A. & Valentini, L., 1997. "Plant location and strategic environmental policy with inter-sectoral linkages," Resource and Energy Economics, Elsevier, vol. 19(4), pages 363-383, November.
    4. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
    5. Mark N. Harris & László Kónya & László Mátyás, 2000. "Modelling the Impact of Environmental Regulations on Bilateral Trade Flows: OECD 1990-96," Melbourne Institute Working Paper Series wp2000n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Bajona, Claustre & Kelly, David L., 2012. "Trade and the environment with pre-existing subsidies: A dynamic general equilibrium analysis," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 253-278.
    7. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    8. Kolstad, Charles D., 1997. "Editor's introduction Special issue: Trade and the environment," Resource and Energy Economics, Elsevier, vol. 19(4), pages 261-266, November.
    9. Selim J rgen Ergun & Maria Fernanda Rivas, 2020. "Testing the Environmental Kuznets Curve Hypothesis in Uruguay using Ecological Footprint as a Measure of Environmental Degradation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 473-485.
    10. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics.
    11. Zaman, Rubaiya, 2012. "CO2 Emissions, Trade Openness and GDP Percapita : Bangladesh Perspective," MPRA Paper 48515, University Library of Munich, Germany.
    12. Yingzhu Yang & Qunhao Wang & Yang Gao & Lexiang Zhao, 2022. "Does Environmental Regulation Promote the Upgrade of the Export Technology Structure: Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-13, August.
    13. Claustre Bajona & David Kelly, 2006. "Free trade agreements and the environment with pre-existing subsidies," 2006 Meeting Papers 306, Society for Economic Dynamics.
    14. Barrett, Scott, 1997. "The strategy of trade sanctions in international environmental agreements," Resource and Energy Economics, Elsevier, vol. 19(4), pages 345-361, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rauscher, Michael, 2001. "International trade, foreign investment, and the environment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
    2. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    3. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
    4. Yuquing Xing & Charles Kolstad, 2002. "Do Lax Environmental Regulations Attract Foreign Investment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(1), pages 1-22, January.
    5. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    6. 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.
    7. Nordström, Håkan & Vaughan, Scott, 1999. "Trade and the environment," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 4, number 4.
    8. Zaman, Rubaiya, 2012. "CO2 Emissions, Trade Openness and GDP Percapita : Bangladesh Perspective," MPRA Paper 48515, University Library of Munich, Germany.
    9. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    10. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 204, Economics Division, School of Social Sciences, University of Southampton.
    11. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics.
    12. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    13. Quiroga, Miguel & Sterner, Thomas & Persson, Martin, 2007. "Have Countries with Lax Environmental Regulations a Comparative Advantage in Polluting Industries?," RFF Working Paper Series dp-07-08, Resources for the Future.
    14. Soete, Luc & Ziesemer, Thomas, 1997. "Gains from trade and environmental policy under imperfect competition and pollution from transport," Research Memorandum 003, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    15. Josh Ederington & Arik Levinson & Jenny Minier, 2005. "Footloose and Pollution-Free," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 92-99, February.
    16. Carol Lehr & John Maxwell, 2000. "Comparative Advantage, Trade, and Transboundary Pollution," Open Economies Review, Springer, vol. 11(3), pages 205-227, July.
    17. Blackman, Allen & Mathis, Mitchell & Nelson, Peter, 2001. "The Greening of Development Economics: A Survey," Discussion Papers 10662, Resources for the Future.
    18. Lanoie, Paul & Laplante, Benoît & Tanguay, Georges A., 1994. "La firme et l’environnement," L'Actualité Economique, Société Canadienne de Science Economique, vol. 70(2), pages 97-111, juin.
    19. Robert Kohn, 1998. "Environmental Protection by One or Both Trading Partners in a Heckscher-Ohlin-Samuelson Model," Open Economies Review, Springer, vol. 9(4), pages 327-342, October.
    20. Aleksandra Falkowska, 2020. "The impact of environmental policy on location patterns in the waste management industry," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 167-195, April.

    More about this item

    Keywords

    Environment Trade regulation;

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • F1 - International Economics - - Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.