Abstract
This note reestimates Grossman and Krueger's (1993) SO2 emissions regression including regressors to capture the effects of scale, trade and trade policy. Several new results are obtained. Increases in economic activity have a negative effect on the environment separate from changes in per capita income, whose relation to the environment is now positive and linear not inverted U-shaped. The trade policy measure is not significant, but its effect is ambiguous a priori. Finally, in line with specialization patterns based on traditional sources of comparative advantage, pollution rises with the capital abundance of a country (since this favors capital-intensive and generally dirtier industries) and falls with increases in labor and land abundance.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 53-61 |
| Number of pages | 9 |
| Journal | International Review of Economics and Finance |
| Volume | 7 |
| Issue number | 1 |
| State | Published - 1998 |
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ASJC Scopus subject areas
- Economics and Econometrics
- Finance
Cite this
The empirical relationship between trade, growth and the environment. / Gale, Lewis R.; Mendez, Jose.
In: International Review of Economics and Finance, Vol. 7, No. 1, 1998, p. 53-61.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - The empirical relationship between trade, growth and the environment
AU - Gale, Lewis R.
AU - Mendez, Jose
PY - 1998
Y1 - 1998
N2 - This note reestimates Grossman and Krueger's (1993) SO2 emissions regression including regressors to capture the effects of scale, trade and trade policy. Several new results are obtained. Increases in economic activity have a negative effect on the environment separate from changes in per capita income, whose relation to the environment is now positive and linear not inverted U-shaped. The trade policy measure is not significant, but its effect is ambiguous a priori. Finally, in line with specialization patterns based on traditional sources of comparative advantage, pollution rises with the capital abundance of a country (since this favors capital-intensive and generally dirtier industries) and falls with increases in labor and land abundance.
AB - This note reestimates Grossman and Krueger's (1993) SO2 emissions regression including regressors to capture the effects of scale, trade and trade policy. Several new results are obtained. Increases in economic activity have a negative effect on the environment separate from changes in per capita income, whose relation to the environment is now positive and linear not inverted U-shaped. The trade policy measure is not significant, but its effect is ambiguous a priori. Finally, in line with specialization patterns based on traditional sources of comparative advantage, pollution rises with the capital abundance of a country (since this favors capital-intensive and generally dirtier industries) and falls with increases in labor and land abundance.
UR - http://www.scopus.com/inward/record.url?scp=0032325522&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0032325522&partnerID=8YFLogxK
M3 - Article
VL - 7
SP - 53
EP - 61
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
SN - 1059-0560
IS - 1
ER -