Remember Me
Or use your Academic/Social account:


Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Aller, Carlos; Ductor, Lorenzo; Herrerias, Maria Jesus (2015)
Publisher: Elsevier
Journal: Energy Economics
Languages: English
Types: Article
Subjects: Energy(all), Economics and Econometrics
This papers analyses the role of the world trade network on the environment. We rely on methods developed for social network analysis to identify the most important countries in connecting trade between all the other countries in the world trade network. We then estimate how the network or indirect effects from trade affect the environmental quality of a country. As the trade networks are endogenously determined by trade and environmental conditions, we use as instrumental variables the growth in the population of trade partners and the growth in the population of trade partners' partners to exploit exogenous variation in the world trade network. Once we simultaneously estimate the environmental, trade, income and network equations using a three-stage least square procedure, we find that network effects harm the environmental quality of developed countries but improve the environment of developing countries.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Acharyya, J., 2009. FDI growth and the environment: evidence from India on CO 2 emission during the last two decades. J. Econ. Dev. 34, 43-58.
    • Altonji, J.G., Segal, L.M., 1996. Small-sample bias in GMM estimation of covariance structures. J. Bus. Econ. Stat. 14, 353-366.
    • Antweiler, W., Copeland, B.R., Taylor, M.S., 2001. Is free trade good for the environment?”. Am. Econ. Rev. 91, 877-908.
    • Apergis, N., Payne, J.E., 2009. CO 2 emissions, energy usage, and output in Central America. Energy Policy 37, 3282-3286.
    • Baghdadi, L., Martinez-Zarzoso, I., Zitouna, H., 2013. Are RTA agreements with environmental provisions reducing emissions? J. Int. Econ. 90, 378-390.
    • Bank, World, 2014. World Bank Development Indicators, World Bank. http://data. worldbank.org/indicator.
    • Bernard, A.B., Jensen, J.B., 1995. Exporters, jobs and wages in US Manufacturing: 1976- 1987. Brook. Pap. Econ. Act.: Microeconomics 67-112.
    • Bernard, A.B., Jensen, J.B., Redding, S.J., Schott, P.K., 2007. Firms in international trade. J. Econ. Perspect. 21, 105-130.
    • Birdsall, N., Wheeler, D., 1993. Trade policy and industrial pollution in Latin America: where are the pollution havens? J. Environ. Dev. 2, 137-149.
    • Chaney, T., 2014. The network structure of international trade. Am. Econ. Rev. 104 (10), 1-39.
    • Choi, S., Galeotti, A., Goyal, S., 2014. Trading in networks: theory and experiments. 8. Cambridge-INET Working Paper.
    • Cole, M., 2004. Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages. Ecol. Econ. 48, 71-81.
    • Cole, M., Elliott, R., 2003. Determining the trade-environment composition effect: the role of capital, labor and environmental regulations. J. Environ. Econ. Manag. 46, 363-383.
    • Cole, M., Rayner, A.J., Bates, J.M., 1997. The Environmental Kuznets Curve: an empirical analysis. Environ. Dev. Econ. 2, 401-416.
    • Copeland, B.R., Taylor, M.S., 2004. Trade, growth and the environment. J. Econ. Lit. 42, 7-71.
    • De Benedictis, L., Tajoli, L., 2011. The world trade network. World Econ. 34, 1417-1454.
    • De Benedictis, L., Nenci, S., Santoni, G., Tajoli, L., Vicarelli, C., 2014. Network analysis of world trade using the BACI-CEPII dataset”. Glob. Econ. J. 14, 287-343.
    • Ductor, L., 2015. Does co-authorship lead to higher academic productivity? Oxf. Bull. Econ. Stat. 77, 385-407.
    • Fagiolo, G., Reyes, J., Schiavo, S., 2009. World-trade web: topological properties, dynamics, and evolution. Phys. Rev. E 79, 036115.
    • Farzin, Y., Bond, C., 2006. Democracy and environmental quality. J. Dev. Econ. 81, 213-235.
    • Felbermayr, G., Koheler, W., 2005. Exploring the extensive and intensive margins of world trade. Rev. World Econ. 142, 642-674.
    • Frankel, J.A., Rose, A.K., 2005. Is trade good or bad for the environment? Sorting out the causality”. Rev. Econ. Stat. 87, 85-91.
    • Galeotti, M., Lanza, A., 1999. Richer and cleaner? A study on carbon dioxide emissions in developing countries. Energy Policy 27, 565-573.
    • Garbaccio, R.F., Jorgenson, D.W., 1999. Why has the energy-output ratio fallen in China? Energy J. 20, 63-91.
    • Garlaschelli, D., Loffredo, M., 2005. Structure and evolution of the world trade network. Phys. A 355, 138-144.
    • Grossman, G.M., Krueger, A.B., 1991. Environmental impacts of North American free trade agreement. National Bureau of Economic Research, Working Paper. 3914.
    • Grossman, G.M., Krueger, 1995. Economic growth and the environment. Q. J. Econ. 110, 353-357.
    • Helpman, E., Melitz, M., Rubinsteain, Y., 2008. Estimating trade flows: trading partners and trading volumes. Q. J. Econ. 123, 441-487.
    • Herrerias, M.J., Cuadros, A., Orts, V., 2013. Energy intensity and investment ownership across Chinese provinces. Energy Econ. 36, 286-298.
    • Hosseini, H., Kaneko, S., 2013. Can environmental quality Spread through Institutions? Energy Policy 56, 312-321.
    • Jackson, M.O., Wolinsky, A., 1996. A strategic model of social and economic networks. J. Econ. Theory 71, 44-74.
    • Janicke, M., Binder, H.M., 1997. Dirty industries: patterns of change in industrial countries”. Environ. Resour. Econ. 9, 467-491.
    • Jayadevappa, R., Chhatre, S., 2000. International trade and environmental quality: a survey. Ecol. Econ. 32, 175-194.
    • Judson, R.A., Schmalensee, R., Stoker, T.M., 1999. World carbon dioxide emissions: 1950- 2050. Rev. Econ. Stat. 80, 15-27.
    • Kali, R., Reyes, J., 2007. The architecture of globalization: a network approach to international economic integratione. J. Int. Bus. Stud. 38, 595-620.
    • Keller, W., 2004. International technology diffusion. J. Econ. Lit. 42, 752-782.
    • Kleemann, L., Abdulai, A., 2013. The impact of trade and economic growth on the environment: revisiting the cross-country evidence. J. Int. Dev. 25, 180-205.
    • Krugman, P., 1980. Scale economies, product differentiation, and the pattern of trade. Am. Econ. Rev. 70, 950-959.
    • Kunčič, A., 2014. Institutional quality dataset. J. Institutional Econ. 10, 135-161.
    • Lean, H.H., Smyth, R., 2010. CO2 emissions, electricity consumption and output in ASEAN. Appl. Energy 87, 1858-1864.
    • Lucas, R.E.B., Wheeler, D., Hettige, H., 1992. Economic development, environmental regulation and the international migration of toxic industrial pollution: 1960-88. In: Low, P. (Ed.), International Trade and the Environment, World Bank Discussion Paper. 159.
    • Managi, S., Hibiki, A., Tsurumi, T., 2009. Does trade openness improve environmental quality?”. J. Environ. Econ. Manag. 58 (3), 346-363.
    • Mani, M., Wheeler, D., 1998. In search of pollution havens? Dirty industry in the world economy, 1960-1995. J. Environ. Dev. 7, 215-247.
    • Mielnik, O., Goldemberg, J., 2002. Foreign direct investment and decoupling between energy and gross domestic product in developing countries. Energy Policy 30, 87-89.
    • Panayotou, T., 1997. Demystifying the Environmental Kuznets curve: turning a black box into a policy tool. Environ. Dev. Econ. 2, 465-484.
    • Perkins, R., Neumayer, E., 2008. Fostering environment-efficiency through transnational linkages? Trajectories of CO2 and SO2, 1980-2000. Environ. Plan. A 40, 2970-2989.
    • Saboori, B., Sulaiman, J., Mohd, S., 2012. Economic growth and CO2 emissions in Malaysia: a cointegration analysis of the Environmental Kuznets Curve. Energy Policy 51, 184-191.
    • Sato, M., Dechezleprtre, A., 2013. Asymmetric Industrial Energy Prices and International Trade. CEP discussion paper. 1337.
    • Serrano, M.A., Boguñá, 2003. Topology of the world trade web. Phys. Rev. E 51, 1-4.
    • Serrano, M.A., Boguñá, Vespignani, A., 2007. Patterns of dominant flows in the world trade web. J. Econ. Interac. Coord. 2, 111-124.
    • Taylor, M.S., 2005. Unbundling the pollution haven hypothesis. Adv. Econ. Anal. Policy 3, 1-28.
    • Termushoev, U., 2006. Pollution Haven Hypothesis or Factor Endowment Hypothesis: Theory and Empirical Examination for the US and China. CERGE-EI Working Paper. 292.
    • Wagner, G., 2010. Energy content of world trade. Energy Policy 38, 7710-7721.
    • Ziliak, J.P., 1997. “Efficient estimation with panel data when instruments are predetermined: an empirical comparison of moment-condition estimators. J. Bus. Econ. Stat. 15 (4), 419-431.
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article