Environmental Regulations and International Trade: A Quantitative Economic Analysis of World Pollution Emissions
15:30-17:00, Friday, October 8, 2021
Tencent Meeting (Meeting ID: 221 261 183)
 | Dr. Ting JI is the associate professor and head of the Department of Trade Economics at the School of International Economics and Trade, Central University of Finance and Economics. He was granted the Ph.D. in Economics from the University of California, Los Angeles in 2015. Dr. Ting JI's research interests lie at the International Trade, Economic Geography and Chinese Economy. His research work has been published in Economic Systems Research, The B.E. Journal of Macroeconomics, and in leading Chinese journals includingThe Journal of World Economy (Shijie Jingji), and Journal of Management Science in China(Guanli Kexue Xuebao). |
We develop and quantitatively evaluate a general equilibrium trade model with pollution as a byproduct of production to study the interaction among international trade, the environment, and environmental regulations. Our analysis suggests that environmental regulations provide a source of comparative advantage, but we fail to find evidence that reducing trade barriers causes pollution-intensive industries to concentrate in countries with weak environmental regulation stringency. This is because environmental regulations, being a crucial determinant of pollution emission and abatement, are weak in determining international specialization. By comparing environmental regulation stringency with other determinants of international trade, we identify productivity and trade costs as the major forces that suppress the influence of environmental regulations in deciding international production and trade. In addition, we incorporate endogenous environmental policy into our framework and explore how environmental policy responds to trade liberalization. We allow for strategic environmental policy, but find its use as tariff substitution is very limited. We also evaluate forces that determine the overall impacts of international trade on worldwide pollution emissions.
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