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An Empirical Investigation of the Balance of Embodied Emission in Trade:Industry Structure and Emission Abatement

Author

Listed:
  • Satoshi Honma

    () (Faculty of Economics, Kyushu Sangyo University)

  • Yushi Yoshida

    () (Faculty of Economics, Kyushu Sangyo University)

Abstract

Using the world panel dataset for the pollution emission embedded in international trade of 132 countries for the period between 1988 and 2008, we investigate whether the balance of embodied emission in trade (BEET) is consistent with the implication of pollution haven hypothesis. By using two differently constructed datasets, we are able to distinguish between the composition (i.e., changes in industry structure of international trade) effect and the technique (i.e., improvement in emission abatement) effect. We find that the composition effect is neither related with the income level nor the democracy level of countries whereas the technique effect is. The empirical evidence provides a partial support that income level is negatively related with the BEET.

Suggested Citation

  • Satoshi Honma & Yushi Yoshida, 2012. "An Empirical Investigation of the Balance of Embodied Emission in Trade:Industry Structure and Emission Abatement," Discussion Papers 57, Kyushu Sangyo University, Faculty of Economics.
  • Handle: RePEc:kyu:dpaper:57
    as

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    File URL: http://www.ip.kyusan-u.ac.jp/keizai-kiyo/dp57.pdf
    File Function: First version, 2012July
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Balance of embodied emission in trade; Environment; Industry structure; International trade; Pollution haven hypothesis.;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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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