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Growth-Trade-Environment Nexus in India

  • Jena, Pradyot Ranjan
  • Grote, Ulrike

This paper evaluates the environmental impacts of economic growth and trade liberalization in India. The empirical strategy in this paper is to estimate the scale, technique and trade-induced composition effects of trade liberalization on pollution. We collect data across major industrial states of India over the time period 1991-2003 and use panel regression techniques for such estimation. The results establish that the impact of growth and trade liberalization on environmental pollution is not unique across the pollutants. It rather depends upon the specific indicator that is examined. Finally, we conclude that trade promotion in the presence of a dynamic pollution regulatory framework can yield sustainable trade.

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Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Zurich 2008 with number 18.

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Date of creation: 2008
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Handle: RePEc:zbw:gdec08:18
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  1. Gene M. Grossman & Alan B. Krueger, 1991. "Environmental Impacts of a North American Free Trade Agreement," NBER Working Papers 3914, National Bureau of Economic Research, Inc.
  2. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
  3. James Andreoni & Arik Levinson, 1998. "The Simple Analytics of the Environmental Kuznets Curve," NBER Working Papers 6739, National Bureau of Economic Research, Inc.
  4. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
  5. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
  6. Cole, Matthew A. & Elliott, Robert J. R., 2003. "Determining the trade-environment composition effect: the role of capital, labor and environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 363-383, November.
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