Green trade patterns and the transboundary transmission of greenhouse gas emissions

Abstract

By classifying international green and non-green trade for the period 1980–2015, this study investigates trends in green trade, exports, and imports as shares of total trade, exports, and imports, respectively. The general findings are that these green shares increased during the review period, albeit with the green shares for member countries of the Organisation for Economic Co-operation and Development showing different trends than those of nonmember countries. Further, three countries at different stages of economic development—the People’s Republic of China, the Republic of Korea, and the United States—each exhibit different trends in green trade over time. In particular, the green trade, export, and import shares of the People’s Republic of China decreased over time, which is in contrast to the increases observed for the Republic of Korea and the United States during the review period. The findings suggest that efforts to persuade developing countries to accept international agreements to reduce greenhouse gas emissions should also consider the transboundary transmission of these emissions and their health effects. © 2020 Asian Development Bank and Asian Development Bank Institute.