Trade and the Environment: A Survey of the Literature

Sturm, Daniel

doi:10.1007/978-94-017-0333-8_6

Cited by 25 publications

(22 citation statements)

References 83 publications

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“…These models are highly stylized, assuming one homogeneous product or two products, perfect competition, fixed and homogeneous technologies, and—if at all—known externalities. A typical example is the work by Hoel (1997; see also Sturm 2003).…”

Section: Economicsmentioning

confidence: 99%

Shifting Trade Patterns as a Means of Reducing Global Carbon Dioxide Emissions

Strømman

Hertwich²,

Duchin

2009

J of Industrial Ecology

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Keywords: aluminum carbon management greenhouse gases (GHGs) industrial ecology input−output analysis world trade model Supplementary material is available on the JIE Web site SummaryThis article extends and applies the world trade model with bilateral trade (WTMBT), a linear program with any number of goods, factors, and regional trade partners that determines regional production, bilateral trade patterns, and region-specific prices on the basis of comparative advantage by minimizing factor use. The model provides a consistent analysis of the global production system, representing geographical location at a regional level, region-specific technologies at a sector level, emissions from production, and resource constraints and costs. An illustrative analysis investigates how changes in the geographic distribution of production could contribute to reducing global carbon dioxide (CO 2 ) emissions and at what cost. The model provides a bridge between global objectives and their determinants and consequences in specific sectors in individual regions. Multi-objective analysis is used to construct a trade-off curve between global factor costs and CO 2 emissions. The relevance of both primal and dual solution variables is demonstrated. In particular, changes in goods prices and emissions are investigated. We conclude that the main impact of tightening carbon constraints is a substantial reduction in international trade accompanied by a shift away from regions most reliant on the combustion of coal. In addition to the analysis of the overall global trends, including the impact on prices, the implications of the global carbon constraint for one specific industry are investigated.

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Section: Economicsmentioning

confidence: 99%

Shifting Trade Patterns as a Means of Reducing Global Carbon Dioxide Emissions

Strømman

Hertwich²,

Duchin

2009

J of Industrial Ecology

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“…Exceptions include Rauscher (), Gürtzgen and Rauscher (), Haupt (, ), Pflüger (), and Benarroch and Weder (). See also Copeland and Taylor (), and the surveys by Sturm (), and more recently Copeland (), who all include brief sections discussing models with monopolistic competition.…”

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confidence: 99%

Trade and the Environment: The Role of Firm Heterogeneity

Kreickemeier

Richter

2013

Rev International Economics

103

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We show that in the presence of heterogeneous firms the aggregate volume of emissions is influenced not only by the long-established scale effect, but also by a reallocation effect resulting from an increase in the relative size of more productive firms. We show how the relative importance of these effects, and hence the overall effect of trade liberalisation on the environment, is affected by the emission-intensity at the firm level: Aggregate emissions decrease when trade is liberalised if and only if firm-specific emission intensity decreases strongly with increasing firm productivity. Terms of use: Documents inJEL codes: F12, F18, Q56

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“…While trade-based pressures may affect environmental policies and practices in developing countries, it is also likely that governance in these countries is an important determinant of environmental policy outcomes. Efforts to improve environmental policy are likely to be aided or impeded by governing institutions (Dasgupta, Laplante, Wang, & Wheeler, 2002;Frankel & Rose, 2005) and governments with 1 See Sturm (2003), Karp (2011), and Cherniwchan, Copeland, and Taylor (2017) for extensive literature surveys. 2 Ray and Gallagher (2016) find that exports from Latin America and the Caribbean to China generate 14% more greenhouse gas emissions and use twice as much water as exports to other countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental policy impacts of trade with China and the moderating effect of governance

Gamso

2018

Env Pol Gov

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Over the past decade, China has become one of the largest trading partners to countries of Latin America and Sub‐Saharan Africa. A major concern is environmental degradation: much of this trade is composed of pollution‐intensive raw materials and Chinese traders do not promote the adoption of stringent environmental policies among trade partners, as the United States and the European Union do. The probable outcome for China's trade partners is a race to the bottom, whereby trade‐based competitive pressures lead governments to systematically weaken environmental regulations. However, this outcome may be moderated by good governance, as willing and able governments react to heightened pollution‐intensive trade with China by strengthening policies. This study considers whether sound governing institutions offset the harmful effects of trade with China on environmental policy outcomes, using a dataset covering 58 Latin American and Sub‐Saharan African countries over 10 years (2001–2010). Tests focus on the moderating effects of two facets of good governance: representativeness and bureaucratic capacity. The results demonstrate that trade with China does generate a race to the bottom in the environmental policies of partner countries. This effect is moderated by bureaucratic capacity, but not by representativeness.

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Trade and the Environment: A Survey of the Literature

Cited by 25 publications

References 83 publications

Shifting Trade Patterns as a Means of Reducing Global Carbon Dioxide Emissions

Shifting Trade Patterns as a Means of Reducing Global Carbon Dioxide Emissions

Trade and the Environment: The Role of Firm Heterogeneity

Environmental policy impacts of trade with China and the moderating effect of governance

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