Climate Change Creates Trade Opportunity in India
AbstractClimate change is an emerging challenge to developing economy like India however it also creates opportunity to grow through climate friendly goods production and new direction of trade. This paper focuses India’s potential export trade in climate friendly goods. The estimated gravity model is defined as the potential trade and potential trade gap is measured as how well a bilateral trade flow performs relative to the mean as predicted by the model. Potential trade gap means that actual trade is less than predicted trade value. It suggests that there is a scope to increase the export of climate friendly goods (CFG) to trading partners. The total estimated CFG export potential trade gap in India is around 6 billion US dollar (USD) in 2008. This study contributes on the empirical measurement of potential trade of climate friendly goods in India. Paper suggests a possible climate smart export-led growth model in India and mitigates climate change problems.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50636.
Date of creation: 11 Feb 2013
Date of revision: 14 Oct 2013
Bilateral trade flow; Climate friendly goods; Export; Gravity model; Potential Trade; Asia; EU; USA; UK.;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F64 - International Economics - - Economic Impacts of Globalization - - - Environment
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- 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
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