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Trade in a'green growth'development strategy : global scale issues and challenges

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  • de Melo, Jaime

Abstract

This 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; and (iii) the product mix attributes of a'green-growth'strategy (environmentally preferable products and goods for environmental management). Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries has led to significant'pollution havens.'Trade policies to'level the playing field'would be ineffective and result in destructive conflicts in the World Trade Organization. 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 The World Bank in its series Policy Research Working Paper Series with number 6236.

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Date of creation: 01 Oct 2012
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Handle: RePEc:wbk:wbrwps:6236

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Keywords: Environmental Economics&Policies; Transport Economics Policy&Planning; Climate Change Mitigation and Green House Gases; Economic Theory&Research; Emerging Markets;

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  1. Copeland,B.R. & Scott Taylor,M., 2003. "Trade, growth and the environment," Working papers 10, Wisconsin Madison - Social Systems.
  2. Erwin Bulte & Edward Barbier, 2005. "Trade and Renewable Resources in a Second Best World: An Overview," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(4), pages 423-463, 04.
  3. 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.
  4. Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003. "Institutions and the resource curse," Memorandum 29/2002, Oslo University, Department of Economics.
  5. 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.
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  8. Michael O. Moore, 2011. "Implementing Carbon Tariffs: A Fool’s Errand?," The World Economy, Wiley Blackwell, vol. 34(10), pages 1679-1702, October.
  9. Nicole A. MATHYS & Jaime de MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.
  10. 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.
  11. Patrick Messerlin, 2011. "Climate, Trade and Water: A ‘Grand Coalition’?," The World Economy, Wiley Blackwell, vol. 34(11), pages 1883-1910, November.
  12. Janina Ketterer & Jana Lippelt & Giovanni Ruta, 2011. "Trade in Virtual Carbon," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 101-103, 07.
  13. 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.
  14. 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.
  15. 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).
  16. 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, vol. 43(2), pages 257-274, June.
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