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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. Bulte, E.H. & Barbier, E., 2005. "Trade and renewable resources in a second best world: An overview," Open Access publications from Tilburg University urn:nbn:nl:ui:12-169687, Tilburg University.
  2. de Melo, Jaime & Mathys, Nicole Andréa, 2010. "Trade and Climate Change: The Challenges Ahead," CEPR Discussion Papers 8032, C.E.P.R. Discussion Papers.
  3. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
  4. 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.
  5. Jean-Marie GRETHER & Nicole A. MATHYS & Jaime de MELO, 2012. "Unravelling the Worldwide Pollution Haven Effect," Working Papers P40, FERDI.
  6. Copeland,B.R. & Scott Taylor,M., 2003. "Trade, growth and the environment," Working papers 10, Wisconsin Madison - Social Systems.
  7. 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.
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  9. Cristea, Anca & Hummels, David & Puzzello, Laura & Avetisyan, Misak, 2013. "Trade and the greenhouse gas emissions from international freight transport," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 153-173.
  10. 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.
  11. Michael Owen Moore, 2010. "Implementing Carbon Tariffs: A Fool's Errand?," Working Papers 2010-02, The George Washington University, Institute for International Economic Policy.
  12. Sambit Bhattacharyya & Roland Hodler, 2008. "Natural Resources, Democracy and Corruption," OxCarre Working Papers 020, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  13. Patrick Messerlin, 2011. "Climate, Trade and Water: A ‘Grand Coalition’?," The World Economy, Wiley Blackwell, vol. 34(11), pages 1883-1910, November.
  14. 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.
  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. 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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