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Trade liberalization and the environment: Evidence from NAFTA and U.S. manufacturing

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  • Cherniwchan, Jevan

Abstract

The unobserved responses of individual polluters are often used to rationalize the aggregate effects of international trade on the environment. In this paper, I provide the first evidence of these responses. I estimate the effects of NAFTA on the emissions of particulate matter (PM10) and sulfur dioxide (SO2) from manufacturing plants in the United States. My findings suggest that trade liberalization led to significant reductions of these pollutants at affected plants. On average, nearly two-thirds of the reductions in PM10 and SO2 emissions from the U.S. manufacturing sector between 1994 and 1998 can be attributed to trade liberalization following NAFTA.

Suggested Citation

  • Cherniwchan, Jevan, 2017. "Trade liberalization and the environment: Evidence from NAFTA and U.S. manufacturing," Journal of International Economics, Elsevier, vol. 105(C), pages 130-149.
    • Handle: RePEc:eee:inecon:v:105:y:2017:i:c:p:130-149
    DOI: 10.1016/j.jinteco.2017.01.005
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    More about this item

    Keywords

    NAFTA; Trade liberalization; Pollution emissions;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • 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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