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International Trade and the Transfer of Environmental Costs and Benefits


  • Hiro Lee
  • David Roland-Holst


The environmental implications of international trade have come under intensified scrutiny in recent years, particularly with expanded interest in multilateralism, regionalism, and other negotiated trade regimes. The transfer of environmental effects, both positive and negative, is embodied in most trade patterns, particularly those which reflect technological hierarchy or other stratification by degree of economic modernization. Despite the emotional reaction these issues often arouse, the question of whether and to whom these transfers are beneficial or detrimental is a very complex one. In this paper, we use applied general equilibrium analysis to examine a well-established trade relationship between two diverse economies, Japan and Indonesia. Historically, it appears that their bilateral trade has conferred asymmetric environmental effects on the two countries, effecting a net transfer of some environmental costs from the former to the latter. In the light of this negative ... Les conséquences du commerce international sur l'environnement ont été examinées minutieusement et intensément au cours des dernières années, en particulier en raison de l'intérêt accru pour le multilatéralisme, le régionalisme et d'autres types d'échanges négociés. Le transfert des incidences, tant positives que négatives, sur l'environnement est inhérent à la plupart des schémas commerciaux, surtout ceux qui reflètent une technologie hiérarchique ou une stratification selon le niveau de modernisation économique. Malgré les réactions émotionnelles fréquemment déclenchées par ces problèmes, il est très difficile de préciser si, et pour qui, ces transferts sont bénéfiques ou néfastes. Dans ce document nous utilisons une analyse d'équilibre général pour examiner les relations commerciales bien établies entre deux éconormies différentes : celle du Japon et celle de l'Indonésie. Sur le plan historique, il apparaît que leurs échanges bilatéraux ont eu des effets environnementaux ...

Suggested Citation

  • Hiro Lee & David Roland-Holst, 1993. "International Trade and the Transfer of Environmental Costs and Benefits," OECD Development Centre Working Papers 91, OECD Publishing.
  • Handle: RePEc:oec:devaaa:91-en

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    Cited by:

    1. Lee, Hiro & Roland-Holst, David, 1997. "The environment and welfare implications of trade and tax policy," Journal of Development Economics, Elsevier, vol. 52(1), pages 65-82, February.
    2. Frankel, Jeffrey A. & Wei, Shang-Jin, 1996. "ASEAN in a Regional Perspective," Center for International and Development Economics Research (CIDER) Working Papers 233438, University of California-Berkeley, Department of Economics.
    3. Thierry Mayer, 2006. "Policy Coherence for Development: A Background Paper on Foreign Direct Investment," OECD Development Centre Working Papers 253, OECD Publishing.
    4. Al-Amin, Abul Quasem & Abdul Hamid, Jaafar & Chamhuri, Siwar, 2008. "Macroeconomic effects of carbon dioxide emission reduction: a computable general equilibrium analysis for Malaysia," MPRA Paper 8667, University Library of Munich, Germany.
    5. Gray, Denice & Krissoff, Barry & Tsigas, Marinos E., 1995. "Western Hemisphere Integration: Trade Policy Reform and Environmental Policy Harmonization," 1995: Economic Integration in the Western Hemisphere Symposium, June 7-9, 1995, San Jose, Costa Rica 50815, International Agricultural Trade Research Consortium.
    6. Jenkins, Rhys Owen, 2003. "Has trade liberalization created pollution havens in Latin America?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    7. Xie, Jian & Saltzman, Sidney, 2000. "Environmental Policy Analysis: An Environmental Computable General-Equilibrium Approach for Developing Countries," Journal of Policy Modeling, Elsevier, vol. 22(4), pages 453-489, July.

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