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Global Manufacturing SO2 Emissions: Does Trade Matter?

Author

Listed:
  • Jean Marie Grether

    (University of Neuchatel)

  • Nicole A. Mathys

    (University of Neuchatel)

  • Jaime de Melo

    (University of Geneva, CERDI and CEPR)

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.

Suggested Citation

  • Jean Marie Grether & Nicole A. Mathys & Jaime de Melo, 2008. "Global Manufacturing SO2 Emissions: Does Trade Matter?," Development Working Papers 263, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:263
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    References listed on IDEAS

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    1. 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.
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    4. Jean-Marie Grether & Jaime de Melo, 2004. "Globalization and Dirty Industries: Do Pollution Havens Matter?," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 167-203, National Bureau of Economic Research, Inc.
    5. 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.
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    7. 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.
    8. Hettige, Hemamala & Martin, Paul & Singh, Manjula & Wheeler,David R., 1995. "The industrial pollution projection system," Policy Research Working Paper Series 1431, The World Bank.
    9. 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.
    10. 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.
    11. 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.
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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," CERDI Working papers halshs-00584997, HAL.
    3. 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.
    4. Fernández-Herrero, Laura & Duro, Juan Antonio, 2019. "What causes inequality in Material Productivity between countries?," Ecological Economics, Elsevier, vol. 162(C), pages 1-16.
    5. Helen Tammela Naughton, 2010. "Globalization and Emissions in Europe," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(2), pages 503-519, December.
    6. Jean-Marie GRETHER & Nicole A. MATHYS, 2010. "Measuring the pollution terms of trade with technique effects," Working Papers I05, FERDI.
    7. Banie Naser Outchiri & Jie He, 2020. "Technical gap, trade partners and product mix evolution: how trading with China affects global CO2 emissions," Cahiers de recherche 20-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Nuno Carlos Leitão & Jeremiás Máté Balogh, 2020. "The impact of intra-industry trade on carbon dioxide emissions: The case of the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 203-214.

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    More about this item

    Keywords

    embodied emissions in trade; environment; growth decomposition; transport; world trade;
    All these keywords.

    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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