الأفاق للدراسات الإقتصادية
Volume 9, Numéro 1, Pages 225-242
2024-11-20
The Impact Of Environmental Regulation On Trade Flows In Oecd Countries: Evidence From Generalized Panel Unconditional Quantile Regression
Authors : Abdelaoui Okba . Ben Moussa Brahim . Rehouma Yacine .
Abstract
The study aims to measure the impact of environmental standards and requirements on trade flows in the Organization for Economic Cooperation and Development (OECD) countries from 1990 to the end of 2021. The study measured the impact of environmental policy stringency, environmental taxes, carbon emissions, and renewable energy on imports and exports as variables indicative of environmental regulation. Unconditional Quantile Regression methods were used to estimate the study model. The study concluded that there is a complex relationship between environmental regulation and trade flows, where the impact of stringent environmental policies, environmental taxes, carbon emissions, and renewable energy use varies significantly among countries with different levels of import and export activities. Specifically, while the stringency of environmental policies and carbon emissions may enhance business activities in countries with moderate imports and exports, they hurt countries at the lower and upper ends of the trade spectrum. The adoption of renewable energy promotes countries with above-average trading activities. However, it may hinder trade in countries with low imports and exports. On the other hand, environmental taxes promote trade in countries with low trade flows while hindering it in the rest of the countries under study.
Keywords
Environmental Regulation ; Environmental Policy Stringency ; Environmental Taxes ; Exports ; Imports
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