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Environmental Effects of International Trade

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  • Frankel, Jeffrey A.

Abstract

The report surveys the state of our knowledge regarding the effects of trade on the environment. A central question is whether globalization helps or hurts in achieving the best tradeoff between environmental and economic goals. Do international trade and investment allow countries to achieve more economic growth for any given level of environmental quality? Or do they damage environmental quality for any given rate of economic growth? Globalization is a complex trend, encompassing many forces and many effects. It would be surprising if all of them were always unfavorable to the environment, or all of them favorable. The highest priority should be to determine ways in which globalization can be successfully harnessed to promote protection of the environment, along with other shared objectives, as opposed to degradation of the environment. The report considers whether globalization has damaged environmental goals. Trade has some of its effects through the channel of accelerating economic growth, because trade contributes to growth analogously to investment, technological progress, and so on. Other effects come even when taking the level of income as given. In the case of each of the two channels, effects can be either positive or negative.

Suggested Citation

  • Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
  • Handle: RePEc:hrv:hksfac:4481652
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    References listed on IDEAS

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    Cited by:

    1. Morakinyo Adetutu & Anthony Glass & Karligash Kenjegalieva & Robin Sickles, 2015. "The effects of efficiency and TFP growth on pollution in Europe: a multistage spatial analysis," Journal of Productivity Analysis, Springer, vol. 43(3), pages 307-326, June.
    2. Salahodjaev, Raufhon & Yuldashev, Oybek, 2016. "Intelligence and greenhouse gas emissions: Introducing Intelligence Kuznets curve," MPRA Paper 68997, University Library of Munich, Germany.
    3. Raufhon Salahodjaev & Oybek Yuldashev, 2016. "Cognitive abilities and air pollution," Business and Economic Horizons (BEH), Prague Development Center, vol. 12(4), pages 178-185, December.
    4. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    5. Audi, Marc & Ali, Amjad, 2018. "Determinants of Environmental Degradation under the Perspective of Globalization: A Panel Analysis of Selected MENA Nations," MPRA Paper 85776, University Library of Munich, Germany.
    6. Gabriel Felbermayr & Mario Larch, 2014. "Transatlantic Free Trade: Questions and Answers from the Vantage Point of Trade Theory," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 03-17, January.
    7. Ian Sheldon & Steve McCorriston, 2012. "Climate policy and border tax adjustments: Might industrial organization matter?," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 9(2), pages 7-28, Julio-Dic.
    8. Levy, Ting & Dinopoulos, Elias, 2016. "Global environmental standards with heterogeneous polluters," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 482-498.
    9. Shahbaz, Muhammad & Ozturk, Ilhan & Afza, Talat & Ali, Amjad, 2013. "Revisiting the environmental Kuznets curve in a global economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 494-502.
    10. Nemati, Mehdi & Hu, Wuyang & Reed, Michael, 2016. "Are Free Trade Agreements Good for the Environment? A Panel Data Analysis," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235631, Agricultural and Applied Economics Association.
    11. Thi Anh Dam & Markus Pasche & Niclas Werlich, 2017. "Trade Patterns and the Ecological Footprint - a theory-based Empirical Approach," Jena Economic Research Papers 2017-005, Friedrich-Schiller-University Jena.

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