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Environmental Non-tariff Measures and Trade in APEC Member Economies

Author

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  • Hyun, Hea-Jung

    (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP))

Abstract

This study examines how environmental nontariff measures (NTMs) affect trade in Asia-Pacific Economic Cooperation (APEC) member economies. Using product-level panel data spanning 2009–2020, we find that stringent environmental NTMs reduce trade in APEC member economies, whereas no significant effect exists when exporting is destined to non-APEC economies. The trade-impeding effect of NTMs is prominent in exports of dirty goods from economies with high-intensity greenhouse gas emissions through additional adaptation costs to meet environmental standards set by high-income importing countries with the high-intensity imposition of the measure. Results imply that APEC economies need to enhance effective environmental regulations by taking the heterogeneous effects of NTMs on trade across industries and types of measures into account.

Suggested Citation

  • Hyun, Hea-Jung, 2023. "Environmental Non-tariff Measures and Trade in APEC Member Economies," APEC Study Series 23-1, Korea Institute for International Economic Policy.
    • Handle: RePEc:ris:kiepas:2023_001
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    More about this item

    Keywords

    Environmental Nontariff Measure; Technical Barriers to Trade (TBT); Sanitary and Phytosanitary Measure (SPS); APEC; International Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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