Measuring the Environmental Impacts of Changing Trade Patterns on the Poor

27 Pages Posted: 15 Aug 2010

See all articles by Kaliappa Kalirajan

Kaliappa Kalirajan

Australian National University - Crawford School of Public Policy

Venkatachalam Anbumozhi

Asian Development Bank Institute

Kanhaiya Singh

affiliation not provided to SSRN

Date Written: August 11, 2010

Abstract

It is an empirical fact that it is very difficult to balance economic growth, poverty reduction, and environment protection, particularly for developing and transitional economies. While the economic environment of a country is influenced by conditions within the country, it is also influenced by external shocks such as the recent global financial crisis depending on how integrated the country is with the rest of the world. Thus, it poses a continuing challenge for policy makers in developing and transitional countries to readjust the economic environment in a way that leads to better and more effective targeting of the chronic issue of poverty reduction without causing damage to the natural environment. It is in this context that this paper attempts to measure the environmental impact of changing trade patterns on the poor.

The recent financial crisis has discouraged United States (US) private consumption, which in turn has significantly reduced exports from Asia. However, Asia’s private consumption is at a very low level even when compared with the current reduced US private consumption. Therefore, it is possible for Asian countries to focus more on improving regional trade and domestic consumption to compensate for the revenue losses that resulted from the reduction in global demand. This paper argues that energy-efficient production methods and service-led growth, particularly trade in environmental goods and services, provide good opportunities for Asian countries to enjoy “inclusive growth” without damaging the natural environment.

Keywords: Asia economic growth, Asia trade and environment, Asia poverty reduction

JEL Classification: E20, Q43, Q56

Suggested Citation

Kalirajan, Kaliappa P. and Anbumozhi, Venkatachalam and Singh, Kanhaiya, Measuring the Environmental Impacts of Changing Trade Patterns on the Poor (August 11, 2010). ADBI Working Paper No. 239. Available at SSRN: https://ssrn.com/abstract=1658342

Kaliappa P. Kalirajan (Contact Author)

Australian National University - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia
+61261258258 (Phone)

Venkatachalam Anbumozhi

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Kanhaiya Singh

affiliation not provided to SSRN ( email )

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