The environmental effects of trade within and across sectors

LaPlue, Lawrence D.

doi:10.1016/j.jeem.2019.01.007

Cited by 28 publications

(6 citation statements)

References 34 publications

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“…Thus, trade liberalization policies reduce total pollution emissions by a population, consistent with the empirical results of Antweiler et al (2001) and several theoretical results (Copeland and Taylor, 2004;Kreickemeier and Richter, 2014;LaPlue, 2019).…”

Section: Permit Market Clearing Conditionsupporting

confidence: 87%

Whether to Abolish or Introduce Dual Regulation as Trade and Environmental Policy?

Hamaguchi

2024

China and World Economy

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China, which has already introduced an environmental tax in an effort to decarbonize, has recently begun emissions trading and is using two environmental policies in tandem, but there are concerns about the impact on growth and trade. Trade and environmental policies affect firms' entry and exit, resulting in changes in aggregate productivity and pollution emissions. This study compares the impacts of single regulation and dual regulation on welfare, using a research‐and‐development based growth model with heterogeneous firms. Under single regulation, the cleansing effect of trade liberalization could be undermined. Under dual regulation, trade liberalization decreases pollution and improves average productivity whereas decreasing total permits reduces pollution. From the perspective of improving welfare it is desirable to choose dual regulation because trade liberalization can reduce total pollution emissions via the cleansing effect of trade liberalization.

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Section: Permit Market Clearing Conditionsupporting

confidence: 87%

Whether to Abolish or Introduce Dual Regulation as Trade and Environmental Policy?

Hamaguchi

2024

China and World Economy

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“…In this paper, we construct a research framework of institutional openness and low carbon development to explore new mechanisms and new ways of carbon emission reduction in the context of institutional openness at both theoretical and empirical levels. The relationship between openness and environmental quality is a combination of multiple effects The exploration of the relationship between the two can help build a regulated trade market with sustainable development and green development norms, which in turn can contribute to national cleaner production in the globalization process 71 .…”

Section: Discussionmentioning

confidence: 99%

Study on carbon emission reduction effect of institutional openness in China

Guo

Wang

2023

Sci Rep

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As the main means to dovetail the domestic system with international rules, institutional openness is the key to deepening participation in the global economic governance system, breaking through energy and carbon emission constraints, and achieving green and sustainable economic development. Taking 284 prefecture-level cities in China from 2006 to 2019 as the research sample, this paper uses the establishment of Pilot Free Trade Zones as a quasi-natural experiment to systematically identify and test the actual impact of institutional openness on urban carbon emissions in China through the asymptotic difference in difference method, instrumental variables method, spatial econometric model, and mediating effects model. Meanwhile, technological progress is used as the entry point to analyze the intrinsic mechanism of action by adopting digital transformation oriented to efficiency improvement and green innovation capability oriented to R&D innovation as the differentiated perspective. It is found that institutional openness significantly suppresses urban CO2 emissions, and there is a certain heterogeneity and spatial spillover effect of this effect. Further study finds that institutional openness achieves carbon emission reduction through technological progress. The study aims to find new institutional innovation and development paths for low carbon development.

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“…Recent literature has documented the critical role of trade in the firm's environmental performance, although the mechanism varies from scale effect, structural reform, technological progress due to learning effects, and arising competition in the domestic market (Cherniwchan, 2017;LaPlue, 2019). However, existing theories on firm's participation in international trade and pollution behavior mostly emphasize on exporting rather than importing (Batrakova and Davies, 2012;Kreickemeier and Richter, 2014;Forslid et al, 2018;Li et al, 2020;Pei et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Imported intermediates, technology spillover, and green development: Evidence from Chinese firms

Huang

Pei

2022

Front. Environ. Sci.

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Firms are critical stakeholders to achieve sustainable development. Thus, corporate environmental performance is a subject of broad concern. In an era of globalization, the relationship between trade and environment is hotly debated. One of the central questions is—will imported intermediates contribute to pollution abatement? Using Chinese firm-level data from 2000 to 2013, the article measures the technology spillover of imported intermediates and empirically tests the inhibitory effect and influence mechanism on pollution intensity with a fixed effects model and an instrumental variable approach. We find that: 1) the technology spillover directly increases innovation and indirectly affects innovation by importing diversity. Imported intermediates empower firms with insufficient innovation to control pollution. However, the incentive effect declines when innovation gradually improves. 2) The technology spillover diffuses along the industrial chain. Downstream firms benefit from the diffusion and thus have lower pollution intensity than upstream firms. 3) The technology spillover contributes to the end-of-pipe emission reduction. Also, it improves energy efficiency and promotes source governance. Furthermore, the environmental benefits of imported intermediates differ along a number of dimensions including sourcing countries, firm ownership, and location. Thus, we pinpoint a new channel concerning trade-induced technique effect. Meanwhile, our results confirm the rationale of liberalization and facilitation policies for imported intermediates, that is, trade policies have the potential to better contribute to sustainable development goals.

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The environmental effects of trade within and across sectors

Cited by 28 publications

References 34 publications

Whether to Abolish or Introduce Dual Regulation as Trade and Environmental Policy?

Whether to Abolish or Introduce Dual Regulation as Trade and Environmental Policy?

Study on carbon emission reduction effect of institutional openness in China

Imported intermediates, technology spillover, and green development: Evidence from Chinese firms

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