Trade and the environment

Abstract

Over the past decades, anti-globalization groups have denounced trade as a major source of environmental degradation in both the developed and developing worlds. From heated debates on trade in endangered species to the more recent public concern about the global climate, the international community has been struggling over maintaining a balance between economic growth and environmental protection in the context of globalization. Drawing on panel data of more than 170 countries, my research investigates whether trade openness results in more environmental and climate degradation. More specifically, I look at how different levels of development interact with trade openness and domestic value added ratio. These interactions have important implications for environmental and climate outcomes.