IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Clean development mechanism in North-South trade

Listed author(s):
  • Chu Ping Lo
Registered author(s):

    Purpose - There is great conflict between some developed countries and developing countries regarding attitudes toward reducing global warming (e.g. the USA vs China). The aim of this paper is to argue that open trade doesn't necessarily increase world pollution if clean development mechanism (CDM) is generously undertaken and if the CDM devotes considerable real resources in transfers of the associate abatement technology. Design/methodology/approach - The impacts of trade on environment can be decomposed into scale, technique and composition effects. This paper incorporates abatement assets into Copeland and Taylor's model to argue that the technique effect stems from an increasing in pollution taxes and in international diffusion of abatement technology; however, the former is fully offset but the latter is facilitated by the CDM. Findings - While world pollution is jointly determined by the composition and technique effects, in contrast to literature, open trade doesn't necessarily increase world pollution if CDM is generously undertaken with considerable real resources in abatement technology transfers. Originality/value - Currently, there are more than about one half of the CDM projects that allocate no real resources in technology transfers. This study addresses how voluntary investment of the CDM from the North (e.g. the USA) to the South (e.g. China) might reduce pollution on a global level only if having “generously” technology transfer.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 4 (2012)
    Issue (Month): 4 (November)
    Pages: 485-498

    in new window

    Handle: RePEc:eme:caerpp:v:4:y:2012:i:4:p:485-498
    Contact details of provider: Web page:

    Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Web: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:4:y:2012:i:4:p:485-498. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.