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Climate Change: An Emerging Trade Opportunity in South Asia

Author

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  • Soumyananda Dinda

    (Soumyananda Dinda, Department of Economics, Golapbag, Burdwan University, Burdwan, 713104, West Bengal, India. E-mails: sdinda2000@yahoo.co.in; s_dinda@hotmail.com)

Abstract

This article investigates emerging opportunities in climate change mitigation in South Asia through trade. Trade can mitigate the climate change issues of a country, region or the world as a whole. Through international agreement (or pressure), trade also creates the opportunity for green jobs that produce environment-friendly goods (EFG), which have less damaging impact on environment. This article examines possible potential trade opportunity of climate-friendly goods (CFG) in South Asia. Applying the gravity model, this article estimates potential trade of CFG in South Asia. It also measures the trade gap as to how well bilateral trade flow performs relative to the mean value of trade as predicted by the model. Here, ‘potential trade gap’ means the gap between actual trade and the predicted trade value. It suggests that there is a scope to improve the export of CFG with trading partners. This article suggests and also highlights an alternative possibility for a climate-friendly export-led growth model in South Asia. It also identifies the potential trade gap of CFG for each regional member and its partners within region and developed countries such as the European Union (EU) and North America (the USA and Canada). JEL Classifications: Q5, C23, F1

Suggested Citation

  • Soumyananda Dinda, 2014. "Climate Change: An Emerging Trade Opportunity in South Asia," South Asian Journal of Macroeconomics and Public Finance, , vol. 3(2), pages 221-239, December.
    • Handle: RePEc:sae:smppub:v:3:y:2014:i:2:p:221-239
    DOI: 10.1177/2277978714548636
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    References listed on IDEAS

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    Cited by:

    1. Dinda, Soumyananda, 2018. "Growing Potential Business opportunity for Climate Friendly Goods and Technologies in Asia since 1997," MPRA Paper 93238, University Library of Munich, Germany, revised 2018.
    2. Dinda, Soumyananda, 2018. "Climate Friendly Goods and Technology Trade: Climate Mitigation Strategy of India," MPRA Paper 93031, University Library of Munich, Germany, revised 2018.
    3. Dinda, Soumyananda, 2011. "Climate Change, Trade, and Competitiveness: Climate Trade Performance of India, SAARC and Asia Pacific Region," MPRA Paper 59423, University Library of Munich, Germany, revised 17 Aug 2014.

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    More about this item

    Keywords

    Bilateral trade flow; climate-friendly goods; EFG; CFG; export; India; trade opportunity; climate change; gravity model; potential trade gap; South Asia; SAARC;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F1 - International Economics - - Trade

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