Open Access Journal Article

How Does Green Trade Affect the Environment? Evidence from China

by Huiling Liu a orcid ,  Heng Lei b,* orcid  and  Youcheng Zhou c orcid
a
School of Economics, Huazhong University of Science and Technology, Wuhan, China
b
School of Management, Huazhong University of Science and Technology, Wuhan, China
c
Department of Accounting, Southampton Business School, University of Southampton, Southampton, UK
*
Author to whom correspondence should be addressed.
JEA  2022 1(1):2; https://doi.org/10.58567/jea01010001
Received: 8 August 2022 / Accepted: 11 September 2022 / Published Online: 13 September 2022
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Abstract

This study focuses on the impact of trade in environmental goods (green trade) on the environment. We found that green trade can decrease pollution levels by exploiting a panel of 277 Chinese cities from 2004 to 2013 and using the instrumental variable (IV) strategy. However, total trade openness is far less favorable to the environment. We also found that both green imports and exports are conducive to the Chinese environment, while ordinary green trade performs better than green processing trade. Nevertheless, the effects of green trade are restricted by a city's purchasing power and absorptive capacity, as well as the classifications of environmental goods. Furthermore, green trade mainly promotes local green technological progress to benefit the environment.

Keywords: Green trade; Environmental pollution; Green imports; Green exports; Instrumental variable;
Copyright: © 2022 by Liu, Lei and Zhou. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Liu, H.; Lei, H.; Zhou, Y. How Does Green Trade Affect the Environment? Evidence from China. Journal of Economic Analysis, 2022, 1, 2. https://doi.org/10.58567/jea01010001
AMA Style
Liu H, Lei H, Zhou Y. How Does Green Trade Affect the Environment? Evidence from China. Journal of Economic Analysis; 2022, 1(1):2. https://doi.org/10.58567/jea01010001
Chicago/Turabian Style
Liu, Huiling; Lei, Heng; Zhou, Youcheng 2022. "How Does Green Trade Affect the Environment? Evidence from China" Journal of Economic Analysis 1, no.1:2. https://doi.org/10.58567/jea01010001
APA style
Liu, H., Lei, H., & Zhou, Y. (2022). How Does Green Trade Affect the Environment? Evidence from China. Journal of Economic Analysis, 1(1), 2. https://doi.org/10.58567/jea01010001

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