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Trade Restrictiveness and Pollution

Author

Listed:
  • NANCY H. CHAU
  • ROLF FÄRE
  • SHAWNA GROSSKOPF

Abstract

This paper proposes a trade restrictiveness indicator that explicitly incorporates environmental externalities. The index employs directional distance functions and use indicators (i.e. differences rather than ratios) modified to account for and evaluate efficiency changes in the face of simultaneous and multi-dimensional trade and environmental policy reforms. The index is made up of two components, one for production and one for consumption. Our overall trade restrictiveness indicator is accordingly the difference of the two. The properties of the indicator are developed and discussed together with its estimation.
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Suggested Citation

  • Nancy H. Chau & Rolf Färe & Shawna Grosskopf, 2013. "Trade Restrictiveness and Pollution," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 25-52, February.
    • Handle: RePEc:bla:jpbect:v:15:y:2013:i:1:p:25-52
    DOI: jpet.12008
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    File URL: http://hdl.handle.net/10.1111/jpet.12008
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    Cited by:

    1. John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 5, pages 81-104, World Scientific Publishing Co. Pte. Ltd..
    2. repec:hal:pseose:hal-00961727 is not listed on IDEAS
    3. repec:hal:gmonwp:hal-00961727 is not listed on IDEAS
    4. Nelson, Douglas & Puccio, Laura, 2021. "Nihil novi sub sole: The Need for Rethinking WTO and Green Subsidies in Light of United States – Renewable Energy," World Trade Review, Cambridge University Press, vol. 20(4), pages 491-508, October.

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