Trade and the environment: an application of the WIOD database


Löschel, Andreas ; Rexhäuser, Sascha ; Schymura, Michael


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URL: https://ub-madoc.bib.uni-mannheim.de/33012
URN: urn:nbn:de:bsz:180-madoc-330127
Document Type: Working paper
Year of publication: 2013
The title of a journal, publication series: ZEW Discussion Papers
Volume: 13-005
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Keywords (English): Environmental and climate economics , trade and the environment , structural decomposition
Abstract: The new WIOD database allows for improved empirical analysis on a wide range of important environmental research questions. In this paper we demonstrate the scientific power of the WIOD database and analyze very urgent policy questions on the impacts of international trade and structural change on the environment. We apply recent econometric approaches to show the impact of international trade on the environment via its different channels as for instance to increase welfare and potentially affects environmental regulation as well as countries’ sector. This approach has become known as the econometric structural decomposition method. In addition to this guidelines by the literature, an econometric panel data approach is offered to shed some light on the impact of structural change and international trade on environmental pressure, where we especially address and solve several endogeneity issues that add further complexity to the analysis.




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