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Please use this identifier to cite or link to this item: http://purl.umn.edu/34157

Title: THE EFFECTS OF TRADE LIBERALIZATION ON THE ENVIRONMENT: AN EMPIRICAL STUDY
Authors: McCarney, Geoffrey R.
Adamowicz, Wiktor L.
Authors (Email): McCarney, Geoff (mccarney@ualberta.ca)
Adamowicz, Vic (vic.adamowicz@ualberta.ca)
Issue Date: 2005
Series/Report no.: Conference Paper
Abstract: We seek to contribute to the emerging economic theory on trade, the environment and development. Using panel data across countries, econometric models are estimated to predict the effects of openness on organic water pollutant (BOD) and carbon dioxide (CO2) emissions. Results indicate that freer trade significantly increases emissions of both pollutants, thus reducing environmental quality. Moreover, the panel nature of the data allows heterogeneity across countries to be controlled, so that comparisons can be made of how different national characteristics influence the environmental impact of freer trade. By testing the effects of democratic versus autocratic governance, it is found that while greater democracy can induce significant reductions in BOD emissions as openness increases, it may also lead to increased CO2 levels. Meanwhile, by testing for and failing to reject the pollution haven hypothesis, it is suggested that environmental gains from openness in relatively rich countries may be coming at the expense of environmental degradation in poorer countries.
URI: http://purl.umn.edu/34157
Institution/Association: Canadian Agricultural Economics Society>Annual Meeting, 2005, July 6-8, San Francisco, CA
Total Pages: 34
Language: English
Collections:Annual Meeting, 2005, July 6-8, San Francisco, CA

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