Trade and Environment: Evidence from China's Manufacturing Sector

Chai, Joseph C.H. (2000). Trade and Environment: Evidence from China's Manufacturing Sector. Working Papers on Economics, Ecology and Environment 42, School of Economics, University of Queensland.

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
Read with bookreader  Working_paper_42.pdf Full text application/pdf 130.95KB 363
Author Chai, Joseph C.H.
Title Trade and Environment: Evidence from China's Manufacturing Sector
School, Department or Centre School of Economics
Institution University of Queensland
Open Access Status Other
Series Working Papers on Economics, Ecology and Environment
Report Number 42
Publication date 2000-06-01
Total pages 20
Subject 1402 Applied Economics
1503 Business and Management
0910 Manufacturing Engineering
0502 Environmental Science and Management
Abstract/Summary This paper uses the manufacturing sector in China to consider whether globalization of the Chinese economy over the past two decades has contributed to the decline in environmental conditions. The results show that China's experience with the trade liberalization-environment nexus is consistent with international evidence. On one hand, trade liberalization has had various positive effects on the environment. Firstly, it promoted specialization in areas of comparative advantage, which, in general, included industries that contributed less to environmental degradation. Secondly, it allowed China to access and adopt the best international practices in pollution abatement technology. Thirdly, it enabled China to transfer environmental costs to other countries by importing intermediate products whose production contributed to environmental degradation. On the other hand, these positive effects were overwhelmed by a negative scale effect, which was the result of a huge increase in the demand for Chinese exports. The paper concludes that if China is to prevent pollution from reaching a critical threshold, environmental regulations need to be tightened.
Keyword China
Trade liberalization
Pollution reduction
Additional Notes ISSN 1327-8231

Document type: Working Paper
Collection: Working Papers (School of Economics)
Version Filter Type
Citation counts: Google Scholar Search Google Scholar
Created: Thu, 27 May 2010, 13:11:08 EST by Mrs Jennifer Creese on behalf of Social Sciences and Humanities Library Service