Is environmental goods trade beneficial for the environmental performance of the concerned countries?

Author name: 
Tran, HTT.
Kalirajan, K.

This paper examines the impacts of environmental goods (EGs) trade on environmental performance of the concerned countries. The EGs have been disaggregated into renewable energy, environmental monitoring analysis and assessment equipment, and environmental protection and environmental preferable products. Environmental performance has been classified into environmental health and ecosystem vitality. The empirical analysis is carried out using data from the Asia Pacific Economic Cooperation (APEC) member countries covering the period of 2007-2014. The empirical results suggest positive impacts of EGs exports and imports on environmental performance. While exports of environmental goods have significant beneficial impacts on environmental health measure, the impact on ecosystem vitality measure is not impressive. These results support the reduction in barriers on EGs trade, which has policy implications towards increasing the technology, awareness, and environmental-regulation effects, and minimizing the scale effect of EGs exports.

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