Is Free Trade Good for the Environment ?

  title={Is Free Trade Good for the Environment ?},
  author={Werner Antweiler and Brian R. Copeland and Marc Scott Taylor},
This paper sets out a theory of how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade's impact on pollution into scale, technique and composition effects and then examine this theory using data on sulfur dioxide concentrations from the Global Environment Monitoring Project. We find international trade creates relatively small changes in pollution concentrations when it alters the composition, and hence the pollution… CONTINUE READING


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