Browsing by Subject "Trade-environment relations"

Now showing 1 - 2 of 2

Open Access
Does trade always harm the global environment? A case for positive interaction
(Oxford University Press, 2000) Alpay, S.
We demonstrate that there are links between international trade and environmental control, heretofore unappreciated, which might substantially alter the efficacy of various governmental policies to control pollution. One concern about national environmental policies is that, whereas the benefits of certain types of abatement might be international or even worldwide, the costs will be borne strictly by the consumers and firms of the country which institutes the policy. As a result, for those types of pollution which are global (such as greenhouse gases) there will be too little pollution abatement. Our first result is that this pessimistic conclusion may be unwarranted. In a 2 x 2 Ricardian model, we also show cases where the non-cooperative contribution of countries to global environmental protection, contrary to the conventional results, exceeds that of the cooperative one due to associated changes in the terms of trade. Thus, international trade is not always a threat to global environment.
Open Access
Environment Kuznets curve for CO2 emissions: a cointegration analysis for China
(Elsevier Ltd, 2009) Jalil, A.; Mahmud, S. F.
This study examines the long-run relationship between carbon emissions and energy consumption, income and foreign trade in the case of China by employing time series data of 1975-2005. In particular the study aims at testing whether environmental Kuznets curve (EKC) relationship between CO2 emissions and per capita real GDP holds in the long run or not. Auto regressive distributed lag (ARDL) methodology is employed for empirical analysis. A quadratic relationship between income and CO2 emission has been found for the sample period, supporting EKC relationship. The results of Granger causality tests indicate one way causality runs through economic growth to CO2 emissions. The results of this study also indicate that the carbon emissions are mainly determined by income and energy consumption in the long run. Trade has a positive but statistically insignificant impact on CO2 emissions. © 2009 Elsevier Ltd. All rights reserved.