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Trade and the environment: An application of the WIOD database

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  • Löschel, Andreas
  • Rexhäuser, Sascha
  • Schymura, Michael

Abstract

The new WIOD database allows for improved empirical analysis on a wide range of important environmental research questions. In this paper we demonstrate the scientific power of the WIOD database and analyze very urgent policy questions on the impacts of international trade and structural change on the environment. We apply recent econometric approaches to show the impact of international trade on the environment via its different channels as for instance to increase welfare and potentially affects environmental regulation as well as countries' sector. This approach has become known as the econometric structural decomposition method. In addition to this guidelines by the literature, an econometric panel data approach is offered to shed some light on the impact of structural change and international trade on environmental pressure, where we especially address and solve several endogeneity issues that add further complexity to the analysis. (Key words: Environmental and Climate Economics, Trade and the Environment, Structural Decomposition).

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  • Löschel, Andreas & Rexhäuser, Sascha & Schymura, Michael, 2013. "Trade and the environment: An application of the WIOD database," ZEW Discussion Papers 13-005, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:13005
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    6. Muhammad Shahbaz, 2022. "Globalization–Emissions Nexus: Testing the EKC Hypothesis in Next-11 Countries," Global Business Review, International Management Institute, vol. 23(1), pages 75-100, February.
    7. Jiansuo Pei & Bodo Sturm & Anqi Yu, 2021. "Are exporters more environmentally friendly? A re‐appraisal that uses China’s micro‐data," The World Economy, Wiley Blackwell, vol. 44(5), pages 1402-1427, May.

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    environmental and climate economics; trade and the environment; structural decomposition).;
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