The empirical relationship between trade, growth, and the environment

Lewis R. Gale, Jose Mendez

Research output: Chapter in Book/Report/Conference proceedingChapter


This note reestimates Grossman and Krueger’s (1993) SO 2 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 languageEnglish (US)
Title of host publicationThe Economics of International Trade and the Environment
PublisherCRC Press
Number of pages7
ISBN (Electronic)9781420032628
ISBN (Print)9781566705301
StatePublished - Jan 1 2001

ASJC Scopus subject areas

  • Social Sciences(all)
  • Agricultural and Biological Sciences(all)
  • Environmental Science(all)


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