Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/177250 
Year of Publication: 
2017
Series/Report no.: 
Working Paper No. 056.2017
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
Based on panel data covering 114 countries in the world, this study investigates the direct, indirect and total effects of trade flows in environmental goods (EG) on total CO2 and SO2 emissions. Our system-GMM estimations reveal positive direct scale – [between-industry] composition effects prevailing on the negative direct technique – [within-industry] composition effects (if any), as well as compensating the significant indirect technique effects channelled by the stringency of environmental regulations and per capita income. If the net importers of EGs (namely from the APEC54 and WTO26 lists) are recurrently found to face increased pollution (in particular CO2 emissions) due to direct scale-composition effects of trade in EGs, the EGs’ net exporters are more likely to see their local pollution to decrease, in particular thanks to income-induced effects. We show that the direct, indirect and total effects of trade in EGs depend on the country’s net trade status, the EGs’ classification and the pollutant considered.
Subjects: 
Environmental Goods
Environmental Policy
Net Exporter
Net Importer
Pollution
Trade
JEL: 
F13
F14
F18
Q53
Q56
Q58
Document Type: 
Working Paper

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