IDEAS home Printed from https://ideas.repec.org/p/csg/ajrcau/287.html
   My bibliography  Save this paper

International Trade and Environmental Policy: How Effective is 'Eco-Dumping'?

Author

Listed:
  • Xinpeng Xu

Abstract

The effects of environmental regulations on the international competitiveness of domestic industries have become an increasing concern in the trade liberalisation process in the 1990s. This paper examines the significance of environmental policy for trade. A generalised GNP function, which incorporates both technology changes and increasing returns to scale is set up and a flexible translog function form is used to approximate this generalised GNP function. Seemingly unrelated regression is employed to estimate a system of sectoral share equations derived from the generalised GNP function. The basic hypothesis is that while the environmental factor is not a significant determinant of the international competitiveness of environmentally sensitive industries, technology is. The result supports this hypothesis and suggests that socalled eco-dumping is not an effective strategy in this context.

Suggested Citation

  • Xinpeng Xu, 1999. "International Trade and Environmental Policy: How Effective is 'Eco-Dumping'?," Asia Pacific Economic Papers 287, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:287
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/pdf/pep/pep-287.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Markusen, James R., 1997. "Costly pollution abatement, competitiveness and plant location decisions," Resource and Energy Economics, Elsevier, vol. 19(4), pages 299-320, November.
    2. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    3. Drysdale, Peter, 1998. "Japan's approach to Asia Pacific economic cooperation," Journal of Asian Economics, Elsevier, vol. 9(4), pages 547-554.
    4. Anderson, Dennis, 1992. "Economic growth and the environment," Policy Research Working Paper Series 979, The World Bank.
    5. Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
    6. David James, 1997. "Energy, Economics & Environment," EEPSEA Special and Technical Paper sp199701t4, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1997.
    7. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xinpeng Xu, 1999. "International Trade And Evnvironmental Policy : How Effective Is €˜eco-Dumpingã¢Â‚¬Â„¢?," Trade Working Papers 22867, East Asian Bureau of Economic Research.
    2. Xu, Xinpeng, 2000. "International trade and environmental policy: how effective is 'eco-dumping'?," Economic Modelling, Elsevier, vol. 17(1), pages 71-90, January.
    3. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    4. Chen, Chunhua & Jiang, Dequan & Lan, Meng & Li, Weiping & Ye, Ling, 2022. "Does environmental regulation affect labor investment Efficiency?Evidence from a quasi-natural experiment in China," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 82-95.
    5. Sun, Chuanwang & Tie, Ying & Yu, Lili, 2024. "How to achieve both environmental protection and firm performance improvement: Based on China's carbon emissions trading (CET) policy," Energy Economics, Elsevier, vol. 130(C).
    6. Stavins, Robert, 2004. "Environmental Economics," RFF Working Paper Series dp-04-54, Resources for the Future.
    7. Houdet, Joël & Trommetter, Michel & Weber, Jacques, 2012. "Understanding changes in business strategies regarding biodiversity and ecosystem services," Ecological Economics, Elsevier, vol. 73(C), pages 37-46.
    8. Xu, Le & Yang, Lili & Li, Ding & Shao, Shuai, 2023. "Asymmetric effects of heterogeneous environmental standards on green technology innovation: Evidence from China," Energy Economics, Elsevier, vol. 117(C).
    9. Yu, Jian & Liu, Peng & Shi, Xunpeng & Ai, Xianneng, 2023. "China’s emissions trading scheme, firms’ R&D investment and emissions reduction," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1021-1037.
    10. Nicholas Howarth, 2011. "Clean Energy Technology and the Role of Non-Carbon Price-Based Policy: An Evolutionary Economics Perspective," European Planning Studies, Taylor & Francis Journals, vol. 20(5), pages 871-891, October.
    11. Cerin, Pontus, 2006. "Bringing economic opportunity into line with environmental influence: A discussion on the Coase theorem and the Porter and van der Linde hypothesis," Ecological Economics, Elsevier, vol. 56(2), pages 209-225, February.
    12. Bergeron, Nancy, 2002. "International Trade and Conservation with Costly Natural Resource Management," Cahiers de recherche 0204, GREEN.
    13. Hong, Qianqian & Cui, Linhao & Hong, Penghui, 2022. "The impact of carbon emissions trading on energy efficiency: Evidence from quasi-experiment in China's carbon emissions trading pilot," Energy Economics, Elsevier, vol. 110(C).
    14. Pang, Yu, 2019. "Taxing pollution and profits: A bargaining approach," Energy Economics, Elsevier, vol. 78(C), pages 278-288.
    15. Zylicz, Tomasz, 2010. "Goals and Principles of Environmental Policy," International Review of Environmental and Resource Economics, now publishers, vol. 3(4), pages 299-334, May.
    16. Ni, Xiaoran & Jin, Qi & Huang, Kunhao, 2022. "Environmental regulation and the cost of debt: Evidence from the carbon emission trading system pilot in China," Finance Research Letters, Elsevier, vol. 49(C).
    17. Ring, Irene, 1997. "Evolutionary strategies in environmental policy," Ecological Economics, Elsevier, vol. 23(3), pages 237-249, December.
    18. Jon D. Harford, 1997. "Firm ownership patterns and motives for voluntary pollution control," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 421-431.
    19. Guan, Dabo & Hubacek, Klaus, 2007. "Assessment of regional trade and virtual water flows in China," Ecological Economics, Elsevier, vol. 61(1), pages 159-170, February.
    20. Cerin, Pontus & Karlson, Lennart, 2002. "Business incentives for sustainability: a property rights approach," Ecological Economics, Elsevier, vol. 40(1), pages 13-22, January.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csg:ajrcau:287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akira Kinefuchi (email available below). General contact details of provider: https://edirc.repec.org/data/ajrccau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.