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Trade and the Environment: New Methods, Measurements, and Results

Author

Listed:
  • Jevan Cherniwchan

    (Alberta School of Business, University of Alberta, Edmonton, Canada T6G 2R6)

  • Brian R. Copeland

    (Vancouver School of Economics, University of British Columbia, Vancouver, Canada V6T 1L4)

  • M. Scott Taylor

    (Department of Economics, University of Calgary, Calgary, Canada T2N 1N4)

Abstract

We review recent research linking international trade to the environment, with a focus on new results and methods. The review is given structure by a novel decomposition linking changes in emissions to changes in productive activity at the plant, firm, industry, and national levels. Although some new results have emerged from the application of a Melitz-style approach to trade and the environment, the full potential of this approach has not yet been realized. We discuss existing empirical and theoretical work, introduce three new hypotheses, and suggest paths for future researchers to follow.

Suggested Citation

  • Jevan Cherniwchan & Brian R. Copeland & M. Scott Taylor, 2017. "Trade and the Environment: New Methods, Measurements, and Results," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 59-85, September.
    • Handle: RePEc:anr:reveco:v:9:y:2017:p:59-85
    DOI: 10.1146/annurev-economics-063016-103756
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    More about this item

    Keywords

    globalization; trade; heterogeneous firms; pollution; environment;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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