Convergence in relative pollution intensity in exports and imports

What is it about?

Pollution terms of trade, i.e., relative pollution intensity in exports and imports, are constructed for 40 countries for over 20 years. By regressing these pollution terms of trade on countries' income level, we find evidence that pollution terms of trade are converging among these 40 countries.

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Photo by chuttersnap on Unsplash

Photo by chuttersnap on Unsplash

Why is it important?

For the debate on who bears the cost of pollution, higher pollution intensity of exports relative to pollution intensity of imports damages the country's environment. empirical evidence of our study