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Trade in Environmental Goods, with Focus on Climate-Friendly Goods and Technologies

Author

Listed:
  • ZhongXiang Zhang

    (East-West Center)

Abstract
Paragraph 31(iii) of the Doha Ministerial Declaration mandates to the liberalization of environmental goods and services. This mandate offers a good opportunity to put climate-friendly goods and services on a fast track to liberalization. Agreement on this paragraph should represent one immediate contribution that the WTO can make to fight against climate change. This paper presents the key issues surrounding the liberalization of trade in climate-friendly goods and technologies in WTO environmental goods negotiations. It begins with discussing what products to liberalize and how. Given that WTO Members are divided by this key issue, the paper explores options to move current negotiations on the liberalization of trade in environmental goods and technologies forward, both within and outside the WTO. Recognizing that there is no one-size-fits-all strategy for tariff liberalization for all countries and for all environmental goods, the paper suggests the need for a high degree of flexibility to accommodate different situations and stakes in the liberalization of trade in environmental goods. Given that there are simply not enough environmental markets or these markets are weak in many developing countries, the paper emphasizes that creating markets for environmental goods in developing countries is far more important than just improving market-access conditions for associated goods, and discusses how to best serve the interests and concerns of developing countries.

Suggested Citation

  • ZhongXiang Zhang, 2011. "Trade in Environmental Goods, with Focus on Climate-Friendly Goods and Technologies," Economics Study Area Working Papers 120, East-West Center, Economics Study Area.
    • Handle: RePEc:ewc:wpaper:wp120
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    References listed on IDEAS

    as
    1. ZhongXiang Zhang & Lucas Assunção, 2004. "Domestic Climate Policies and the WTO," The World Economy, Wiley Blackwell, vol. 27(3), pages 359-386, March.
    2. ZhongXiang Zhang, 2003. "Open Trade with the U.S. without Compromising Canada’s Ability to Comply with its Kyoto Target," Working Papers 2003.68, Fondazione Eni Enrico Mattei.
    3. ZhongXiang Zhang, 2010. "The U.S. proposed carbon tariffs, WTO scrutiny and China’s responses," International Economics and Economic Policy, Springer, vol. 7(2), pages 203-225, August.
    4. Yohei Harashima, 2008. "Trade and environment negotiations in the WTO: Asian perspectives," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(1), pages 17-34, March.
    5. Zhang, ZhongXiang, 2010. "China in the transition to a low-carbon economy," Energy Policy, Elsevier, vol. 38(11), pages 6638-6653, November.
    6. World Bank, 2007. "International trade and Climate Change : Economic, Legal, and Institutional Perspectives," World Bank Publications - Books, The World Bank Group, number 6831.
    7. Zhang, ZhongXiang, 2010. "Liberalizing Climate-Friendly Goods and Technologies in the WTO: Product Coverage, Modalities, Challenges and the Way Forward," Sustainable Development Papers 94620, Fondazione Eni Enrico Mattei (FEEM).
    8. Robert Hamwey, 2005. "Environmental Goods: Where Do the Dynamic Trade Opportunities for Developing Countries Lie?," International Trade 0512015, University Library of Munich, Germany.
    9. Zhang, ZhongXiang & Maruyama, Aki, 2001. "Towards a private-public synergy in financing climate change mitigation projects," Energy Policy, Elsevier, vol. 29(15), pages 1363-1378, December.
    10. Zhang, ZhongXiang, 2009. "Multilateral trade measures in a post-2012 climate change regime? What can be taken from the Montreal Protocol and the WTO?," Energy Policy, Elsevier, vol. 37(12), pages 5105-5112, December.
    11. Zhang, ZhongXiang, 2008. "Asian energy and environmental policy: Promoting growth while preserving the environment," Energy Policy, Elsevier, vol. 36(10), pages 3905-3924, October.
    12. Ronald Steenblik & Dominique Drouet & George Stubbs, 2005. "Synergies Between Trade in Environmental Services and Trade in Environmental Goods," OECD Trade and Environment Working Papers 2005/1, OECD Publishing.
    13. Zhang, ZhongXiang, 2009. "Liberalizing climate-friendly goods and technologies in WTO environmental goods negotiations: product coverage, modalities, challenges and the way forward," MPRA Paper 16943, University Library of Munich, Germany, revised 10 Aug 2009.
    14. Joy A. Kim, 2007. "Issues of Dual Use and Reviewing Product Coverage of Environmental Goods," OECD Trade and Environment Working Papers 2007/1, OECD Publishing.
    15. Zhang, ZhongXiang, 1998. "Greenhouse gas emissions trading and the world trading system," MPRA Paper 12971, University Library of Munich, Germany.
    16. World Bank & International Finance Corporation & Multilateral Investment Guarantee Agency, 2008. "Development and Climate Change," World Bank Publications - Reports 28200, The World Bank Group.
    17. ZhongXiang Zhang, 2011. "Energy and Environmental Policy in China," Books, Edward Elgar Publishing, number 13559.
    18. Emma Paulsson, 2009. "A review of the CDM literature: from fine-tuning to critical scrutiny?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(1), pages 63-80, February.
    19. World Bank & International Finance Corporation & Multilateral Investment Guarantee Agency, 2008. "Development and Climate Change," World Bank Publications - Reports 28201, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Zugravu-Soilita, Natalia, 2017. "Trade in Environmental Goods: Empirical Exploration of Direct and Indirect Effects on Pollution by Country’s Trade Status," EIA: Climate Change: Economic Impacts and Adaptation 266287, Fondazione Eni Enrico Mattei (FEEM).
    2. Roberta Sestini & Donatella Pugliese, 2021. "To buy or to do it yourself? Pollution policy and environmental goods in developing countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(1), pages 105-135, March.
    3. Natalia Zugravu-Soilita, 2019. "Trade in Environmental Goods and Air Pollution: A Mediation Analysis to Estimate Total, Direct and Indirect Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1125-1162, November.

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    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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