Paper

The Effect of Environmental Regulation of ASEAN on China’s Export Trade


Authors:
Shanshan Wu
Abstract
Based on China-ASEAN panel data in the period of 1990-2007, this paper uses the gravity models to analyze the effect of the environmental regulation of ASEAN on China’s export trade. In the paper, we are creatively using energy consumption per capita and carbon dioxide emissions per capita as two proxies to measure the stringency of environmental regulation, which reflects economic characteristics of developing countries. According to the theory of supply and demand, we propose export scale and export structure as two factors which can affect the effect of environmental regulation of trade, after analyzing how the foreign environmental regulation affects China’s export. Finally, we testify “the export scale effect of environmental regulation” and “the export structure effect of environmental regulation” by using the empirical results and listed data. That is: 1. China’s export is less sensitive to environmental regulation of ASEAN member countries when the scale of export is relatively small; 2. China’s export is more sensitive to the environmental regulation of ASEAN member countries when “dirty product” covers a greater proportion.
Keywords
Trade; Environmental Regulation; China-ASEAN; Panel Data; Gravity Models Introduction
StartPage
145
EndPage
153
Doi
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