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How green trade influences pollution emissions in China: A provincial perspective

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  • Li, Jiaman
  • Dong, Kangyin
  • Dong, Xiucheng
  • Shahbaz, Muhammad

Abstract

How green trade affects regional environmental conditions is one of the core issues of sustainable economic growth in China. Based on the distinction of product quality, this study first assesses the level of provincial green trade by utilizing firm-level trade data on 142 green products. Then, based on panel data for the period 2007–2016 in China, this study empirically explores the comprehensive impact of green trade on pollution emissions by employing the SYS-GMM method. Furthermore, this paper explores the heterogeneous analysis, asymmetric analysis, and mediating mechanism analysis of the green trade - pollution emissions nexus. Following are the main conclusions: (1) Green trade can effectively reduce pollution emissions; (2) improved environmental quality can be achieved by increased trade in green medium- and high-technology products; (3) across various provinces, this impact is heterogeneous and asymmetric; and (4) the scale and technique effects are significant mediators in this nexus based on the mediation mechanism, while the composition effect is insignificant. The findings have several policy implications for improving green trade and reducing environmental degradation.

Suggested Citation

  • Li, Jiaman & Dong, Kangyin & Dong, Xiucheng & Shahbaz, Muhammad, 2022. "How green trade influences pollution emissions in China: A provincial perspective," Energy Economics, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:eneeco:v:115:y:2022:i:c:s0140988322004595
    DOI: 10.1016/j.eneco.2022.106330
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    More about this item

    Keywords

    Green trade; Pollution emissions; Mediating mechanism; Heterogeneous and asymmetric analysis; China;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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