Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251299 
Year of Publication: 
2022
Series/Report no.: 
Working Papers No. 2022-02
Publisher: 
Banco de México, Ciudad de México
Abstract: 
This paper develops a model of used vehicle trade between countries with different environmental regulations regarding vehicle emissions. We show that the US, given its strict environmental regulations, has incentives to export used vehicles to Mexico, which impacts air pollution emissions caused by automobile driving in Mexico. Using a unique database on vehicle registration in Mexico and imports after the NAFTA enactment, we find that Mexico's used vehicle imports reduced average pollution emissions generated by vehicles, mainly due to the "technique effect"-differences in emissions of vehicles of comparable model and age between those that operate in the US before being imported (that emit less pollutants) and those operating in Mexico.
Subjects: 
Trade Liberalization
Used Vehicles
Pollution Emissions
Technique Effect
JEL: 
F13
L62
Q56
Q51
Document Type: 
Working Paper
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