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Trade in a ‘Green Growth’ Development Strategy Global Scale Issues and Challenges

  • Jaime de MELO

    ()

    (Ferdi)

The paper surveys the state of knowledge about the trade-related environmental consequences of a country’s development strategy along three channels: (i) direct trade-environment linkages (overexploitation of natural resources and trade-related transport costs);(ii) ’virtual trade’ in emissions resulting from production activities; (iii) the product mix attributes of a ‘green-growth’ strategy (environmentally preferable products and goods for environmental management). Main conclusions are the following. Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries has led to significant ‘pollution havens’. Trade policies to ‘level the playing field’ would be ineffective and result in destructive conflicts in the WTO. Lack of progress at the Doha round suggests the need to modify the current system of global policy making.

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File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/P48_WEB.pdf
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Paper provided by FERDI in its series Working Papers with number P48.

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Date of creation: May 2012
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Handle: RePEc:fdi:wpaper:473
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Web page: http://ferdi.fr/

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  1. Janina Ketterer & Jana Lippelt & Giovanni Ruta, 2011. "Trade in Virtual Carbon," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 101-103, 07.
  2. Paul Brenton & Gareth Edwards-Jones & Michael Friis Jensen, 2009. "Carbon Labelling and Low-income Country Exports: A Review of the Development Issues," Development Policy Review, Overseas Development Institute, vol. 27(3), pages 243-267, 05.
  3. Jean-Marie GRETHER & Nicole A. MATHYS & Jaime DE MELO, 2006. "Unraveling the World-Wide Pollution Haven Effect," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 06.04, Université de Lausanne, Faculté des HEC, DEEP.
  4. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
  5. de Melo, Jaime & Mathys, Nicole Andréa, 2010. "Trade and Climate Change: The Challenges Ahead," CEPR Discussion Papers 8032, C.E.P.R. Discussion Papers.
  6. 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.
  7. Huifang Tian & John Whalley, 2010. "The Potential Global and Developing Country Impacts of Alternative Emission Cuts and Accompanying Mechanisms for the Post Copenhagen Process," NBER Working Papers 16090, National Bureau of Economic Research, Inc.
  8. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
  9. Carolyn Fischer, 2010. "Does Trade Help or Hinder the Conservation of Natural Resources?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 103-121, Winter.
  10. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
  11. Moore, Michael O., 2010. "Implementing carbon tariffs : a fool's errand ?," Policy Research Working Paper Series 5359, The World Bank.
  12. Aichele, Rahel & Felbermayr, Gabriel, 2010. "Kyoto and the carbon content of trade," FZID Discussion Papers 10-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  13. Patrick Messerlin, 2011. "Climate, Trade and Water: A ‘Grand Coalition’?," The World Economy, Wiley Blackwell, vol. 34(11), pages 1883-1910, November.
  14. Erwin Bulte & Edward Barbier, 2005. "Trade and Renewable Resources in a Second Best World: An Overview," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(4), pages 423-463, 04.
  15. Jean-Marie Grether & Nicole Mathys & Jaime de Melo, 2009. "Scale, Technique and Composition Effects in Manufacturing SO 2 Emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 257-274, June.
  16. Sambit Bhattacharyya & Roland Hodler, 2008. "Natural Resources, Democracy and Corruption," OxCarre Working Papers 020, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  17. Gary Clyde Hufbauer & Steve Charnovitz & Jisun Kim, 2009. "Global Warming and the World Trading System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4280.
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