Trade liberalization and the environment: Carbon dioxide for 1960-1999

This paper examines the empirical question of whether free trade is harmful or beneficial for the environment. Using a comprehensive panel data for 63 developed and developing countries over 1960 E999, the result for CO2 suggests further trade liberalization will increase the emissions with the elasticity of 0.579. In my best knowledge, this is the first study that estimates the overall effects of trade liberalization to the environment.