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Global manufacturing SO 2 emissions: does trade matter?

Author

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  • Jean-Marie Grether

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  • Nicole Mathys
  • Jaime Melo

Abstract

A growth-decomposition (scale, technique and composition effect) covering 62 countries and 7 manufacturing sectors over the 1990-2000 period shows that trade, through reallocations of activities across countries, has contributed to a 2-3 percent decrease in world SO2 emissions. However, when compared to a constructed counterfactual no-trade benchmark, depending on the base year, trade would have contributed to a 3-10 percent increase in emissions. Finally adding emissions coming from trade-related transport activities, global emissions are increased through trade by 16 percent in 1990 and 13 percent in 2000, the decline being largely attributable to a shift of dirty activities towards cleaner countries.
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Suggested Citation

  • Jean-Marie Grether & Nicole Mathys & Jaime Melo, 2010. "Global manufacturing SO 2 emissions: does trade matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 713-729, January.
  • Handle: RePEc:spr:weltar:v:145:y:2010:i:4:p:713-729
    DOI: 10.1007/s10290-009-0033-2
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    File URL: http://hdl.handle.net/10.1007/s10290-009-0033-2
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    References listed on IDEAS

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    1. Jean-Marie Grether & Jaime de Melo, 2003. "Globalization and Dirty Industries: Do Pollution Havens Matter?," NBER Working Papers 9776, National Bureau of Economic Research, Inc.
    2. Miketa, Asami & Mulder, Peter, 2005. "Energy productivity across developed and developing countries in 10 manufacturing sectors: Patterns of growth and convergence," Energy Economics, Elsevier, vol. 27(3), pages 429-453, May.
    3. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    4. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    5. Matthew A. Cole & Robert J. R. Elliott, 2003. "Do Environmental Regulations Influence Trade Patterns? Testing Old and New Trade Theories," The World Economy, Wiley Blackwell, vol. 26(8), pages 1163-1186, August.
    6. David I. Stern, 2005. "Reversal in the Trend of Global Anthropogenic Sulfur Emissions," Rensselaer Working Papers in Economics 0504, Rensselaer Polytechnic Institute, Department of Economics.
    7. Cole, Matthew A. & Elliott, Robert J. R., 2003. "Determining the trade-environment composition effect: the role of capital, labor and environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 363-383, November.
    8. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    9. Susmita Dasgupta & Ashoka Mody & Subhendu Roy & David Wheeler, 2001. "Environmental Regulation and Development: A Cross-country Empirical Analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 29(2), pages 173-187.
    10. 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.
    11. Jean-Marie Grether & Nicole Mathys & Jaime de Melo, 2009. "Scale, Technique and Composition Effects in Manufacturing SO 2 Emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 257-274, June.
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    Citations

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    Cited by:

    1. 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.
    2. Alassane Drabo, 2011. "Do Political Institutions protect the poor? Intra Countries Health Inequalities and Air Pollution in Developing Countries," Working Papers halshs-00584997, HAL.
    3. Helen Tammela Naughton, 2010. "Globalization and Emissions in Europe," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(2), pages 503-519, December.
    4. Jean-Marie GRETHER & Nicole A. MATHYS, 2010. "Measuring the pollution terms of trade with technique effects," Working Papers I05, FERDI.
    5. Grether, Jean-Marie & Mathys, Nicole A., 2013. "The pollution terms of trade and its five components," Journal of Development Economics, Elsevier, vol. 100(1), pages 19-31.

    More about this item

    Keywords

    Embodied emissions in trade; Environment; Growth decomposition; Transport; World trade; F18; Q56;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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