Environmental Impacts of International Trade:The Case of Industrial Emission of Sulfur Dioxide (SO_2) in Chinese Provinces

To get better understanding on trade's impact on environment,we construct a four-equation simultaneous system,in which emission is determined by the three economic determinants:scale,composition and technique effects,and directly affected by trade.The model is then estimated by 29 Chinese provinces' panel data on industrial SO2 emission (1993—2001).Our estimation results reveal opposite roles of export expansion and imports of manufactured goods in determining industrial SO2 emission.The results do not support the "pollution haven" hypothesis;the reinforced competition faced by exporters is a positive factor encouraging technology progress in pollution abatement.