How does trade impact the environment?

A thread collecting papers that address this question. Emphasis on research using causal inference methods.

Please let me know what papers should be included!

[THREAD]

1/n
Is trade good or bad for the environment? Sorting out the causality, by Frankel & Rose

Geographical determinants of trade used as instrumental variables.

Trade reduces three measures of air pollution (S02, N02, particulate matter).

https://www.jstor.org/stable/pdf/40042924.pdf

[THREAD]

2/n">https://www.jstor.org/stable/pd...
An *essential* book on this topic!

Trade and the environment: Theory and evidence, by Copeland and Taylor

Theoretical framework for the impact of trade on pollution. Validates with air pollution data.

Free trade reduces air pollution.

https://press.princeton.edu/books/paperback/9780691124001/trade-and-the-environment

[THREAD]

3/n">https://press.princeton.edu/books/pap...
We developed a theoretical model of water and trade. @JeffReimer9 @g_dibaldassarre

https://www.sciencedirect.com/science/article/abs/pii/S0309170815300117

[THREAD]

4/n">https://www.sciencedirect.com/science/a...
Does trade impact water use?

We used instrumental variables to answer this. Does not impact industrial water use.

A one percentage point increase in trade -> 5.2% decrease in agricultural water withdrawals, through intensive margin.

https://agupubs.onlinelibrary.wiley.com/doi/full/10.1002/2017WR021102

[THREAD]

5/n">https://agupubs.onlinelibrary.wiley.com/doi/full/...
Does trade impact nutrient use?
(water quality implications)

We used instrumental variables to evaluate the impact of trade on nutrient use.

Trade does not significantly impact nutrient use.

https://iopscience.iop.org/article/10.1088/1748-9326/aaebcb

[THREAD]

6/n">https://iopscience.iop.org/article/1...
Assessing the effectiveness of environmental provisions in Regional Trade Agreements.

Membership in RTAs, either with or without environmental provisions, is associated with improved air quality.

Suggested by @GGruere

https://www.oecd-ilibrary.org/environment/assessing-the-effectiveness-of-environmental-provisions-in-regional-trade-agreements_5ffc615c-en

[THREAD]

6/n">https://www.oecd-ilibrary.org/environme...
The effects of international trade on water use

Instrumental variables used to show that trade reduces total water use through technique and composition effects.

A 1% increase in trade reduces water withdrawals by 1.0–1.5%.

https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0132133

[THREAD]

9/n">https://journals.plos.org/plosone/a...
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