Impact of Trade in Environmental Goods on Environmental Quality: A Case of Asian Countries

Abstract

This study aims to examine the impact of trade in environmental goods on environmental quality in 30 Asian countries from 2000 to 2020. Our analysis revealed the different impacts of trade in overall and specific environmental goods on environmental quality in each Asian region. Specifically, our results suggest a positive relationship between trade in overall and particular environmental goods and environmental quality in East Asia and South Asia, a negative relationship between trade in overall environmental goods and specific environmental goods (environmental goods on the OA list), and environmental quality in West Asia. However, in Southeast Asia, we found only a negative association between trade in Environmentally Preferable Products (EPPs) and environmental quality. The findings from this study shed light on the vital importance of trading environmental goods in affecting environmental quality in Asian regions. Empirical evidence suggests that Asian nations in each region need to have particular policies appropriate to economic conditions to improve environmental quality through the exchange of environmental goods in the future.