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Trade in a'green growth'development strategy : global scale issues and challenges

  • de Melo, Jaime

This paper surveys the state of knowledge about the trade-related environmental consequences of a country's development strategy along three channels: (i) direct trade-environment linkages (overexploitation of natural resources and trade-related transport costs); (ii)'virtual trade'in emissions resulting from production activities; and (iii) the product mix attributes of a'green-growth'strategy (environmentally preferable products and goods for environmental management). Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries has led to significant'pollution havens.'Trade policies to'level the playing field'would be ineffective and result in destructive conflicts in the World Trade Organization. Lack of progress at the Doha Round suggests the need to modify the current system of global policy making.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6236.

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Date of creation: 01 Oct 2012
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Handle: RePEc:wbk:wbrwps:6236
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  1. Sambit Bhattacharyya & Roland Hodler, 2008. "Natural Resources, Democracy and Corruption," Department of Economics - Working Papers Series 1047, The University of Melbourne.
  2. de Melo, Jaime & Grether, Jean-Marie & Mathys, Nicole Andréa, 2006. "Unravelling the World-Wide Pollution Haven Effect," CEPR Discussion Papers 5815, C.E.P.R. Discussion Papers.
  3. Janina Ketterer & Jana Lippelt & Giovanni Ruta, 2011. "Trade in Virtual Carbon," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 101-103, 07.
  4. repec:ner:tilbur:urn:nbn:nl:ui:12-169687 is not listed on IDEAS
  5. Carolyn Fischer, 2010. "Does Trade Help or Hinder the Conservation of Natural Resources?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 103-121, Winter.
  6. Anca D. Cristea & David Hummels & Laura Puzzello & Misak G. Avetisyan, 2011. "Trade and the Greenhouse Gas Emissions from International Freight Transport," NBER Working Papers 17117, National Bureau of Economic Research, Inc.
  7. Michael O. Moore, 2011. "Implementing Carbon Tariffs: A Fool’s Errand?," The World Economy, Wiley Blackwell, vol. 34(10), pages 1679-1702, October.
  8. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
  9. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
  10. Erwin Bulte & Edward Barbier, 2005. "Trade and Renewable Resources in a Second Best World: An Overview," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(4), pages 423-463, 04.
  11. Patrick Messerlin, 2011. "Climate, Trade and Water: A ‘Grand Coalition’?," The World Economy, Wiley Blackwell, vol. 34(11), pages 1883-1910, November.
  12. Huifang Tian & John Whalley, 2010. "The Potential Global and Developing Country Impacts of Alternative Emission Cuts and Accompanying Mechanisms for the Post Copenhagen Process," NBER Working Papers 16090, National Bureau of Economic Research, Inc.
  13. Paul Brenton & Gareth Edwards-Jones & Michael Friis Jensen, 2009. "Carbon Labelling and Low-income Country Exports: A Review of the Development Issues," Development Policy Review, Overseas Development Institute, vol. 27(3), pages 243-267, 05.
  14. Nicole A. MATHYS & Jaime de MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.
  15. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
  16. Jean-Marie Grether & Nicole Mathys & Jaime de Melo, 2009. "Scale, Technique and Composition Effects in Manufacturing SO 2 Emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 257-274, June.
  17. Aichele, Rahel & Felbermayr, Gabriel, 2010. "Kyoto and the carbon content of trade," FZID Discussion Papers 10-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  18. Gary Clyde Hufbauer & Steve Charnovitz & Jisun Kim, 2009. "Global Warming and the World Trading System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4280, March.
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