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Trade-induced pollution transfers and implications for Japan's investment and assistance

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  • Lee, Hiro
  • Roland-Holst, David

Abstract

Traded commodities embody an environmental service, namely the amount of pollution emitted domestically when goods are produced for export. Japan’s extensive economic ties with its Asian Pacific trading partners necessitate special consideration of trade and environment linkages. The data presented in this paper indicate that bilateral trade with Japan has resulted in substantial net transfers of effluent loads during the period 1981-95. To remedy environmental inequality of this kind, we recommend the promotion of technology transfer from Japan to developing countries through foreign direct investment and development assistance. In a related context, results in the Appendix show how coordinating multilateral trade liberalization with cost-effective environmental policy can achieve the twin objectives of higher national income and environmental quality improvement.

Suggested Citation

  • Lee, Hiro & Roland-Holst, David, 1999. "Trade-induced pollution transfers and implications for Japan's investment and assistance," MPRA Paper 82359, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82359
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    File URL: https://mpra.ub.uni-muenchen.de/82359/1/MPRA_paper_82359.pdf
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    References listed on IDEAS

    as
    1. Hiro Lee & David Roland-Holst, 1994. "Trade Liberalization and Employment Linkages in the Pacific Basin," OECD Development Centre Working Papers 94, OECD Publishing.
    2. Lee, Hiro & Roland-Holst, David, 1997. "The environment and welfare implications of trade and tax policy," Journal of Development Economics, Elsevier, vol. 52(1), pages 65-82, February.
    3. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 755-787.
    4. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1997. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 442-455, May.
    5. Daniel Esty, 1994. "Greening the GATT: Trade, Environment, and the Future," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 40, April.
    6. Martin,Will & Winters,L. Alan (ed.), 1996. "The Uruguay Round and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521586016.
    7. Robert Mendelshohn & Daigee Shaw (ed.), 1996. "The Economics of Pollution Control in the Asia Pacific," Books, Edward Elgar Publishing, number 733.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Pollution transfers; trade and environment; emissions embodied in trade (EET); net embodied effluent content of traded goods (NEET); Japan;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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