A Note on the Empirical Relationship Between Trade, Growth and the Environment
AbstractThis note reestimates Grossman and Krueger�s (1993) SO2 emissions regression including regressors to capture the effects of scale, trade and trade policy. Several new results are obtained. Increases in economic activity have a negative effect on the environment separate from changes in per capita income, whose relation to the environment is now positive and linear not inverted- U shaped. The trade policy measure is not significant, but its effect is ambiguous a priori. Finally, in line with specialization patterns based on traditional sources of comparative advantage, pollution rises with the capital abundance of a country (since this favors capital-intensive and generally dirtier industries) and falls with increases in labor and land abundance.
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Bibliographic InfoPaper provided by Arizona State University, Department of Economics in its series Working Papers with number 96/3.
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Trade; Economic Growth; Environment;
Other versions of this item:
- Jose Mendez & Lewis Gale, . "A Note on the Empirical Relationship Between Trade, Growth and the Environment," Working Papers 2132836, Department of Economics, W. P. Carey School of Business, Arizona State University.
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F1 - International Economics - - Trade
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10, Wisconsin Madison - Social Systems.
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