TY - JOUR AU - Antweiler,Werner AU - Copeland,Brian R. AU - Taylor,M. Scott TI - Is Free Trade Good for the Environment? JF - National Bureau of Economic Research Working Paper Series VL - No. 6707 PY - 1998 Y2 - August 1998 UR - http://www.nber.org/papers/w6707 L1 - http://www.nber.org/papers/w6707.pdf N1 - Author contact info: Werner Antweiler University of British Columbia Sauder School of Business 2053 Main Mall Vancouver, B.C., Canada, V6T 1Z2 E-Mail: werner.antweiler@ubc.ca Brian Copeland Department of Economics The University of British Columbia #997-1873 East Mall Vancouver, BC V6T 1Z1 CANADA E-Mail: copeland@econ.ubc.ca M. Scott Taylor IEE Canada Research Chair Department of Economics The University of Calgary 2500 University Drive, N.W. Calgary, AB T2N 1N4 CANADA Tel: 403/220-8912 Fax: 403/282-5262 E-Mail: mstaylor@ucalgary.ca AB - This paper sets out a theory of how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade's impact on pollution into scale, technique, and composition effects and then examine this theory using data on sulfur dioxide concentrations when it alters the composition, and hence the pollution intensity, of national output. Our estimates of the associated technique and scale efforts created by trade imply a net reduction in pollution from these sources. Combining our estimates of scale, composition, and technique efforts yields a somewhat surprising conclusion: freer trade appears to be good for the environment. ER -