Journal
JOURNAL OF INTERNATIONAL ECONOMICS
Volume 105, Issue -, Pages 130-149Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jinteco.2017.01.005
Keywords
NAFTA; Trade liberalization; Pollution emissions
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Funding
- Centre for Applied Business Research in Energy and the Environment at the University of Alberta
- [SSHRC]
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The unobserved responses of individual polluters are often used to rationalize the aggregate effects of international trade on the environment. In this paper, I provide the first evidence of these responses. I estimate the effects of NAFTA on the emissions of particulate matter (PK10) and sulfur dioxide (SO2) from manufacturing plants in the United States. My findings suggest that trade liberalization led to significant reductions of these pollutants at affected plants. On average, nearly two-thirds of the reductions in PM10 and SO2 emissions from the U.S. manufacturing sector between 1994 and 1998 can be attributed to trade liberalization following NAFTA. (C) 2017 The Authors. Published by Elsevier B.V.
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