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New evidence on trade-environment linkage via air visibility

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  • Li, Zhigang
  • Xu, Nan
  • Yuan, Jia

Abstract

We revisit the effect of trade openness on environmental quality by utilizing data on the air visibility of 134 countries during 1961–2004. We find a significantly negative impact of trade openness on air quality, not only for developing economies, but also for developed ones. This finding is new to the literature and contrasts with existing evidence.

Suggested Citation

  • Li, Zhigang & Xu, Nan & Yuan, Jia, 2015. "New evidence on trade-environment linkage via air visibility," Economics Letters, Elsevier, vol. 128(C), pages 72-74.
    • Handle: RePEc:eee:ecolet:v:128:y:2015:i:c:p:72-74
    DOI: 10.1016/j.econlet.2015.01.014
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    References listed on IDEAS

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    1. Managi, Shunsuke & Hibiki, Akira & Tsurumi, Tetsuya, 2009. "Does trade openness improve environmental quality?," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 346-363, November.
    2. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    3. Jeffrey A. Frankel & Andrew K. Rose, 2005. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 85-91, February.
    4. Li, Zhigang & Yuan, Jia & Song, Frank & Wei, Shangjin, 2014. "Is economic rebalancing toward consumption “greener”? Evidence from visibility in China, 1984–2006," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 1021-1032.
    5. Colin Kirkpatrick & S. Serban Scrieciu, 2008. "Is trade liberalisation bad for the environment? A review of the economic evidence," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(4), pages 497-510.
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    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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