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Measuring the pollution terms of trade with technique effects

Author

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  • Jean-Marie GRETHER

    (FERDI)

  • Nicole A. MATHYS

    (Office fédéral suisse de l'énergie (OFEN))

Abstract

The pollution terms of trade (PTT) index first introduced and estimated by Antweiler (1996) allows to identify if trade-embodied emissions are on average larger in exports than in imports. His empirical results were based on the tradecomposition (between-sector) part of the PTT and revealed rather paradoxically that exports of rich countries were on average dirtier than their imports. Using a new database on SO2 manufacturing emissions that includes variation of emission intensities across countries, sectors and over time, this paper extends the earlier work by identifying two additional effects: the between-country and the technique effect. As it turns out, these two effects run opposite to the between-sector effect, and more than compensate it. Hence, the overall pattern is that high income countries tend to have lower PTT indices, meaning that their exports are cleaner than their imports, while in low income countries the reverse is observed.

Suggested Citation

  • Jean-Marie GRETHER & Nicole A. MATHYS, 2010. "Measuring the pollution terms of trade with technique effects," Working Papers I05, FERDI.
    • Handle: RePEc:fdi:wpaper:614
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    References listed on IDEAS

    as
    1. 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.
    2. 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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    Cited by:

    1. Nicole A. MATHYS & Jaime DE MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers P37, FERDI.
    2. Nicole A. MATHYS & Jaime DE MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.

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    More about this item

    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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