The empirical relationship between trade, growth and the environment

Autor: Jose A. Mendez, Lewis R. Gale
Rok vydání: 1998
Předmět:
Zdroj: International Review of Economics & Finance. 7:53-61
ISSN: 1059-0560
DOI: 10.1016/s1059-0560(99)80016-1
Popis: This note reestimates Grossman and Krueger's (1993) SO 2 emissions regression including regressors to capture the effects of scale, trade and trade policy. Several new results are obtained. Increases in economic activity have a negative effect on the environment separate from changes in per capita income, whose relation to the environment is now positive and linear not inverted U-shaped. The trade policy measure is not significant, but its effect is ambiguous a priori . Finally, in line with specialization patterns based on traditional sources of comparative advantage, pollution rises with the capital abundance of a country (since this favors capital-intensive and generally dirtier industries) and falls with increases in labor and land abundance.
Databáze: OpenAIRE
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