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Measuring the Environmental Impacts of Changing Trade Patterns on the Poor

Author

Listed:
  • Kaliappa Kalirajan

    (Asian Development Bank Institute)

  • VenkatachalamAnbumozhi
  • Kanhaiya Singh

Abstract

It is an empirical fact that it is very difficult to balance economic growth, poverty reduction, and environment protection, particularly for developing and transitional economies. While the economic environment of a country is influenced by conditions within the country, it is also influenced by external shocks such as the recent global financial crisis depending on how integrated the country is with the rest of the world. Thus, it poses a continuing challenge for policy makers in developing and transitional countries to readjust the economic environment in a way that leads to better and more effective targeting of the chronic issue of poverty reduction without causing damage to the natural environment. It is in this context that this paper attempts to measure the environmental impact of changing trade patterns on the poor. The recent financial crisis has discouraged United States (US) private consumption, which in turn has significantly reduced exports from Asia. However, Asias private consumption is at a very low level even when compared with the current reduced US private consumption. Therefore, it is possible for Asian countries to focus more on improving regional trade and domestic consumption to compensate for the revenue losses that resulted from the reduction in global demand. This paper argues that energy-efficient production methods and service-led growth, particularly trade in environmental goods and services, provide good opportunities for Asian countries to enjoy inclusive growth without damaging the natural environment.

Suggested Citation

  • Kaliappa Kalirajan & VenkatachalamAnbumozhi & Kanhaiya Singh, 2010. "Measuring the Environmental Impacts of Changing Trade Patterns on the Poor," Trade Working Papers 22727, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:22727
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    References listed on IDEAS

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    5. Ronald Steenblik & Dominique Drouet & George Stubbs, 2005. "Synergies Between Trade in Environmental Services and Trade in Environmental Goods," OECD Trade and Environment Working Papers 2005/1, OECD Publishing.
    6. Mary Amiti & Caroline Freund, 2010. "The Anatomy of China's Export Growth," NBER Chapters,in: China's Growing Role in World Trade, pages 35-56 National Bureau of Economic Research, Inc.
    7. Ronald Steenblik, 2005. "Liberalising Trade in 'Environmental Goods': Some Practical Considerations," OECD Trade and Environment Working Papers 2005/5, OECD Publishing.
    8. Masahiro Kawai, 1998. "The East Asian Currency Crisis: Causes And Lessons," Contemporary Economic Policy, Western Economic Association International, vol. 16(2), pages 157-172, April.
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    11. Ronald Steenblik, 2005. "Environmental Goods: A Comparison of the APEC and OECD Lists," OECD Trade and Environment Working Papers 2005/4, OECD Publishing.
    12. Wunsch-Vincent, Sacha, 2009. "Opening Markets for International Trade in Services: Countries and Sectors in Bilateral and WTO Negotiations edited by Juan A. Marchetti and Martin Roy Cambridge University Press, 2009," World Trade Review, Cambridge University Press, vol. 8(04), pages 619-622, October.
    13. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
    14. Steven Radelet & Jeffrey D. Sachs, 1998. "The East Asian Financial Crisis: Diagnosis, Remedies, Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, pages 1-90.
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    16. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, pages 716-737.
    17. Geoffrey J Bannister, 2001. "International Trade and Poverty Alleviation," IMF Working Papers 01/54, International Monetary Fund.
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    Citations

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    Cited by:

    1. Kalirajan, Kaliappa, 2012. "Regional Cooperation towards Green Asia: Trade and Investment," ADBI Working Papers 350, Asian Development Bank Institute.
    2. Kalirajan, Kaliappa, 2012. "Regional Cooperation towards Green Asia: Trade and Investment," ADBI Working Papers 350, Asian Development Bank Institute.
    3. Kalirajan, Kaliappa, 2012. "Regional cooperation towards green Asia: Trade in low carbon goods and services," Working Papers 249395, Australian National University, Centre for Climate Economics & Policy.
    4. Anbumozhi, Venkatachalam & Kimura, Mari & Isono, Kumiko, 2011. "Leveraging Environment and Climate Change Initiatives for Corporate Excellence," ADBI Working Papers 335, Asian Development Bank Institute.

    More about this item

    Keywords

    poverty reduction; environmental sustainability; trade; United States;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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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