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Author: | Antweiler, W. Copeland, B. R. Taylor, M. S. |
Title: | Is Free Trade Good for the Environment? |
Journal: | American Economic Review
2001 : SEP, VOL. 91:4, p. 877-908 |
Index terms: | FREE TRADE ENVIRONMENT ECONOMICS |
Language: | eng |
Abstract: | This paper investigates how openness to international goods markets affects pollution concentrations. The authors develop a theoretical model to divide trade's impact on pollution into scale, technique, and composition effects and then examine this theory using data on sulfur dioxide concentrations. The authors find international trade creates relatively small changes in pollution concentrations when it alters the composition of national output. Estimates of the trade-induced technique and scale effects imply a net reduction in pollution from these sources. Combining the authors' estimates of all three effects yields a somewhat surprising conclusion: freer trade appears to be good for the environment. |
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