Trade and the Environment: An Application of the WIOD Database

25 Pages Posted: 1 Feb 2013

See all articles by Andreas Löschel

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics

Sascha Rexhauser

ZEW – Leibniz Centre for European Economic Research

Michael Schymura

ZEW – Leibniz Centre for European Economic Research

Date Written: 2013

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.

Keywords: Environmental and Climate Economics, Trade and the Environment, Structural Decomposition

Suggested Citation

Löschel, Andreas and Rexhauser, Sascha and Schymura, Michael, Trade and the Environment: An Application of the WIOD Database (2013). ZEW - Centre for European Economic Research Discussion Paper No. 13-005. Available at SSRN: https://ssrn.com/abstract=2209756 or http://dx.doi.org/10.2139/ssrn.2209756

Andreas Löschel (Contact Author)

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics ( email )

Universitätsstr. 14-16
48143 Munster
Germany

HOME PAGE: http://www.wiwi.uni-muenster.de/eroe

Sascha Rexhauser

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Michael Schymura

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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