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Environment and Trade: A Review of Theory and Issues

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  • Xing, Yuqing
  • Kolstad, Charles

Abstract

This paper illustrates the major issues influencing interaction between environmental regulation and international trade by reviewing the empirical studies and theoretical results of the last 20 years. The second section of the paper discusses how environmental regulation distorts comparative advantage and specialization. The third part covers the impact of environmental regulation on the location of polluting industries. The fourth part covers transnational pollution and trade in wastes. The fifth section discusses major conflicts between trade policy and environmental policy. The final part addresses strategic environmental policy and international trade.

Suggested Citation

  • Xing, Yuqing & Kolstad, Charles, 1996. "Environment and Trade: A Review of Theory and Issues," MPRA Paper 27694, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27694
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    References listed on IDEAS

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    Cited by:

    1. Robert Hoffmann & Chew-Ging Lee & Bala Ramasamy & Matthew Yeung, 2005. "FDI and pollution: a granger causality test using panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(3), pages 311-317.
    2. Laixun Zhao & Zhihao Yu & Yoshiko Onuma, 2005. "A theory of mutual migration of polluting firms," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 900-918, August.
    3. Ulph, A. & Valentini, L., 1997. "Plant location and strategic environmental policy with inter-sectoral linkages," Resource and Energy Economics, Elsevier, vol. 19(4), pages 363-383, November.
    4. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
    5. Mark N. Harris & László Kónya & László Mátyás, 2000. "Modelling the Impact of Environmental Regulations on Bilateral Trade Flows: OECD 1990-96," Melbourne Institute Working Paper Series wp2000n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Bajona, Claustre & Kelly, David L., 2012. "Trade and the environment with pre-existing subsidies: A dynamic general equilibrium analysis," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 253-278.
    7. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    8. Kolstad, Charles D., 1997. "Editor's introduction Special issue: Trade and the environment," Resource and Energy Economics, Elsevier, vol. 19(4), pages 261-266, November.
    9. Selim Jürgen Ergun & Maria Fernanda Rivas, 2020. "Testing the Environmental Kuznets Curve Hypothesis in Uruguay using Ecological Footprint as a Measure of Environmental Degradation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 473-485.
    10. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics.
    11. Zaman, Rubaiya, 2012. "CO2 Emissions, Trade Openness and GDP Percapita : Bangladesh Perspective," MPRA Paper 48515, University Library of Munich, Germany.
    12. Yingzhu Yang & Qunhao Wang & Yang Gao & Lexiang Zhao, 2022. "Does Environmental Regulation Promote the Upgrade of the Export Technology Structure: Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-13, August.
    13. Claustre Bajona & David Kelly, 2006. "Free trade agreements and the environment with pre-existing subsidies," 2006 Meeting Papers 306, Society for Economic Dynamics.
    14. Barrett, Scott, 1997. "The strategy of trade sanctions in international environmental agreements," Resource and Energy Economics, Elsevier, vol. 19(4), pages 345-361, November.

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    More about this item

    Keywords

    Environment Trade regulation;

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • F1 - International Economics - - Trade

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