The impact of China’s WTO entrance on the environment: a decomposition analysis
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2022-07-18
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en
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In this study we analyse the impact of China’s entrance in the World Trade Organization (WTO) on its environment. We do so by using a framework that divides the environmental impact of trade liberalization into scale, technique, and composition effects. By means of a time series from 1989 until 2018 we research changes in the balance between these three effects in China. We measure such environmental externalities by using the environmental footprint, CO2 and N2O per capita. Following a literature review we hypothesize an increase in importance of the technique effect over the scale & composition effect after China’s entrance in the WTO. We also predict an increase in environmental externalities due to the scale and composition effect and a decrease of them due to the technique one. From our results we were able to confirm that the scale & composition effect increase CO2 per capita emissions in China. We were however not able to confirm any of the other hypotheses on the balance between the effects for the environmental footprint and N2O due to insignificant results.
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Faculteit der Managementwetenschappen