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International trade, pollution, and economic structure: evidence on CO2 emissions for the North and the South

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  • Vinicius A. Vale
  • Fernando S. Perobelli
  • Ariaster B. Chimeli

Abstract

This study investigates the mechanics of international trade and CO2 emissions in two blocs of countries (‘North’ and ‘South’) by analyzing data from the World Input–Output Database. We adapt the Miyazawa technique to estimate the linkages between international trade and the environment at a global scale. Therefore, this study is in line with the idea of highlighting the role of feedback effects as well as the nature and extent of extra-regional influences on an economy in response to an additional stimulus. This is a contribution that, to our best knowledge, has not yet appeared in the literature. Our results suggest that both the North and the South have become less pollution-intensive (technique effect) over the years. Interestingly and in contrast to much of the literature, we also find support to the hypothesis that the South has specialized in relatively more pollution-intensive activities (composition effect).

Suggested Citation

  • Vinicius A. Vale & Fernando S. Perobelli & Ariaster B. Chimeli, 2018. "International trade, pollution, and economic structure: evidence on CO2 emissions for the North and the South," Economic Systems Research, Taylor & Francis Journals, vol. 30(1), pages 1-17, January.
  • Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:1-17
    DOI: 10.1080/09535314.2017.1361907
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    3. Franco, Marco Paulo Vianna & Souza, Carla Cristina Aguilar de & Carvalho, Terciane Sabadini & Leal Filho, Raimundo de Sousa & Morais, Reinaldo Carvalho de, 2020. "Carbon Emissions from Fuel Combustion in the Economy of the State of Minas Gerais, Brazil (2005-2016)," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 14(3), pages 469-491.
    4. Zhangqi Zhong & Xu Zhang & Weina Gao, 2020. "Spatiotemporal Evolution of Global Greenhouse Gas Emissions Transferring via Trade: Influencing Factors and Policy Implications," IJERPH, MDPI, vol. 17(14), pages 1-24, July.
    5. Nejati, Mehdi & Shah, Muhammad Ibrahim, 2023. "How does ICT trade shape environmental impacts across the north-south regions? Intra-regional and Inter-regional perspective from dynamic CGE model," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    6. Araújo, Inácio Fernandes de & Jackson, Randall W. & Ferreira Neto, Amir B. & Perobelli, Fernando S., 2020. "European union membership and CO2 emissions: A structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 190-203.
    7. Chien‐Chiang Lee & Godwin Olasehinde‐Williams & Bright Akwasi Gyamfi, 2023. "The synergistic effect of green trade and economic complexity on sustainable environment: A new perspective on the economic and ecological components of sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 976-989, April.
    8. Hongzhong Fan & Md Ismail Hossain & Mollah Aminul Islam & Yassin Elshain Yahia, 2019. "The Impact of Trade, Technology and Growth on Environmental Deterioration of China and India," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 1-29, January.

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