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Does international trade improve environmental efficiency? An application of a super slacks-based measure of efficiency

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  • Satoshi Honma

Abstract

This study analyzes the impact of international trade on environmental efficiency. Using a data envelopment analysis (DEA) model that allows us to treat undesirable outputs and super-efficiency beyond unity, we measure the environmental efficiency of four typical air pollutants—SO 2 , NOx, particulate matter 10 μm or less in diameter, and CO 2 —for 98 countries for the period 1970–2008. The resulting environmental efficiency is regressed on income, capital-labor ratio, and trade openness. The panel regression results reveal that trade openness is positively correlated to the environmental efficiency. However, the impact of trade openness on environmental efficiency varies across countries depending on their relative per capita income. The estimated results show that the higher the relative income per capita, the more the benefit of trade on the environmental efficiency. Copyright Honma. 2015

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  • Satoshi Honma, 2015. "Does international trade improve environmental efficiency? An application of a super slacks-based measure of efficiency," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-12, December.
    • Handle: RePEc:spr:jecstr:v:4:y:2015:i:1:p:1-12:10.1186/s40008-015-0023-6
    DOI: 10.1186/s40008-015-0023-6
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    Cited by:

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    3. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    4. Khan, Muhammad Tufail & Imran, Muhammad, 2023. "Unveiling the Carbon Footprint of Europe and Central Asia: Insights into the Impact of Key Factors on CO2 Emissions," MPRA Paper 116484, University Library of Munich, Germany, revised 22 Feb 2023.
    5. Sorroche-del-Rey, Yolanda & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2023. "Interrelationship between international trade and environmental performance: Theoretical approaches and indicators for sustainable development," MPRA Paper 119918, University Library of Munich, Germany.
    6. Zeng, Juying & Pagàn-Castaño, Esther & Ribeiro-Navarrete, Samuel, 2022. "Merits of Intercity Innovation Cooperation of Environment-friendly Patents for Environmental Regulation Efficiency," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
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    8. Farhan Ahmed & Shazia Kousar & Amber Pervaiz & José Pedro Ramos-Requena, 2020. "Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach," Sustainability, MDPI, vol. 12(18), pages 1-21, September.

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    More about this item

    Keywords

    Data envelopment analysis; Environmental efficiency; Pollution haven hypothesis; Super-efficiency; Q56; Q53; Q54;
    All these keywords.

    JEL classification:

    • 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
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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