International Trade and Green Growth

This paper reviews the challenges and opportunities raised by international trade for developing countries considering a green growth strategy. A key concern is the effect of environmental policies on international competitiveness. For production-generated pollution, there is evidence that stringent environmental policy reduces some indicators of competitiveness, but the effect is small in most sectors. However, tightening up environmental standards is unlikely to reduce international competitiveness when pollution is generated by consumption. And where depletion of natural capital is a threat, effective environmental policy is an important component of a policy aimed at developing long-run international competitiveness. The effects of trade on environmental policy, the interaction between trade and technology transfer, and the interaction between trade and transboundary environmental problems are also reviewed. An emerging issue is the potential use of border taxes to curtail carbon leakage. The paper discusses some of the possible responses by developing countries. Some work has indicated that export taxes or voluntary export restraints applied to carbon-intensive production in non-coalition countries may be preferable to a carbon tariff regime. The paper concludes by suggesting some topics for further research.

Bibliographic Details

Main Author:	Copeland, Brian R.
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-10
Subjects:	ABATEMENT, ABATEMENT COST, ABATEMENT COSTS, ACID, ACID RAIN, ADVERSE EFFECT, ADVERSE EFFECTS, ADVERSE IMPACTS, AGRICULTURAL ECONOMICS, AGRICULTURE, AIR, AIR POLLUTANTS, AIR QUALITY, ALLOCATION, ALLOWANCE, ALTERNATIVE POLICIES, BASELINE LEVELS, CAP AND TRADE SYSTEMS, CAPITAL GOODS, CAPS, CARBON, CARBON EMISSION, CARBON EMISSIONS, CARBON INTENSITY, CARBON LEAKAGE, CARBON TAX, CARBON TAXES, CHEMICALS, CLEAN AIR, CLEAN AIR ACT, CLEAN TECHNOLOGIES, CLEARCUTTING, CLIMATE, CLIMATE CHANGE, CLOSED ECONOMIES, CLOSED ECONOMY, CO, COAL, COMPARATIVE ADVANTAGE, COMPETITION POLICY, COMPETITIVENESS, COMPLIANCE COSTS, CONSUMERS, COST SAVINGS, DEFORESTATION, DEVELOPED COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DIFFUSION, ECOLOGICAL ECONOMICS, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC EFFECTS, ECONOMIC GROWTH, ECONOMIC GROWTH RATES, ECONOMIC HISTORY, ECONOMIC RESEARCH, ECONOMIC THEORY, ECONOMICS, ECONOMIES OF SCALE, ELASTICITIES, ELASTICITY, ELECTRIC POWER, ELECTRIC POWER PLANTS, ELECTRICITY, ELECTRICITY SECTOR, EMISSION, EMISSION CHARGES, EMISSION CONTROL, EMISSION INTENSITY, EMISSION PERMITS, EMISSION REDUCTION, EMISSION REDUCTIONS, EMISSION STANDARDS, EMISSION TARGETS, EMISSION TAX, EMISSION TAXES, EMISSION TRADING, EMISSIONS, EMISSIONS LEAKAGE, EMISSIONS POLICY, EMISSIONS TARGETS, EMISSIONS TAXES, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, ENDANGERED SPECIES, ENERGY ECONOMICS, ENERGY POLICY, ENVIRONMENTAL, ENVIRONMENTAL BENEFITS, ENVIRONMENTAL COSTS, ENVIRONMENTAL DEGRADATION, ENVIRONMENTAL ECONOMICS, ENVIRONMENTAL ISSUES, ENVIRONMENTAL POLICIES, ENVIRONMENTAL POLICY, ENVIRONMENTAL PROBLEMS, ENVIRONMENTAL QUALITY, ENVIRONMENTAL REGULATION, ENVIRONMENTAL REGULATIONS, ENVIRONMENTALLY FRIENDLY TECHNOLOGIES, EQUILIBRIUM, ESTIMATES OF CARBON, EXTERNALITIES, EXTERNALITY, FAIR TRADE, FEASIBILITY, FISH, FISHERIES, FISHERS, FISHING, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREST, FORESTRY, FORESTS, FOSSIL FUEL, FOSSIL FUELS, FREE MARKET, FREE TRADE, FUEL PRICES, FUTURE RESEARCH, GDP, GLOBAL CARBON EMISSIONS, GLOBAL EMISSIONS, GLOBAL ENVIRONMENTAL PROBLEMS, GLOBAL WARMING, GOVERNMENT REGULATIONS, GREENHOUSE, GREENHOUSE GASES, GREENHOUSE-GAS, GROWTH MODELS, GROWTH RATE, HAZARDOUS WASTE, ILLEGAL FISHING, IMPERFECT COMPETITION, INCOME, INCOME LEVELS, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INDUSTRIAL POLLUTION, INDUSTRIALIZATION, INFANT INDUSTRY ARGUMENT, INTERMEDIATE GOODS, INTERMEDIATE INPUTS, INTERNATIONAL TRADE, LABOR COSTS, LABOR FORCE, LABOR PRODUCTIVITY, LAKES, LAND ECONOMICS, LONG LAGS, LOWER COSTS, LUMP SUM, LUMP SUM TRANSFERS, MARGINAL ABATEMENT, MARGINAL ABATEMENT COSTS, MARKET FAILURE, MARKET FAILURES, MARKET POWER, MONETARY ECONOMICS, MONTREAL PROTOCOL, NATURAL CAPITAL, NET EXPORTS, NET IMPORTS, NEWLY INDUSTRIALIZED COUNTRIES, NITROGEN, NITROGEN OXIDE, NITROGEN OXIDES, NOX, OIL, OPEN ECONOMIES, OPEN ECONOMY, OZONE, PARETO EFFICIENCY, PARTICULATE, PARTICULATE MATTER, PARTICULATES, PASTURES, PER CAPITA INCOME, PERFORMANCE STANDARDS, POLICY IMPLICATIONS, POLICY INSTRUMENTS, POLICY MAKERS, POLITICAL ECONOMY, POLLUTERS, POLLUTION, POLLUTION ABATEMENT, POLLUTION CONTROL, POLLUTION REGULATION, POLLUTION TAX, POLLUTION TAXES, POSITIVE EXTERNALITIES, PP, PRODUCERS, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC ECONOMICS, PUBLIC GOOD, PUBLIC GOODS, QUOTAS, REBATES, REDUCING EMISSIONS, RESOURCE MANAGEMENT, RETURNS TO SCALE, SHADOW PRICE, SO2, SOCIAL COSTS, SPILLOVER EFFECTS, SULFUR, SULFUR DIOXIDE, SULFUR DIOXIDE EMISSIONS, SULPHUR, SULPHUR DIOXIDE, SUPPLY CURVES, SUSPENDED SOLIDS, SUSTAINABLE DEVELOPMENT, TAX INCIDENCE, TECHNOLOGICAL CHANGE, TERMS OF TRADE, TOXIC SUBSTANCES, TRADE LIBERALIZATION, TRADE POLICIES, TRADE POLICY, TRADEOFFS, VOLUNTARY EXPORT RESTRAINTS, WATER POLLUTION, WATER QUALITY, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2012/10/16836189/international-trade-green-growth-international-trade-green-growth http://hdl.handle.net/10986/12086
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