Impacts of environmental policies on global green trade

Sung Jin Kang, Sun Lee

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)


The objective of this study was to investigate the impact of environmental policies on bilateral green exports among developed and developing countries. The empirical analysis was based on the fixed-effects gravity model estimation with the PPML (Poisson pseudo-maximum likelihood) for bilateral green trade of world countries for 1990–2019. This study focused on two proxy environmental policy indicators: environment-related tax and energy intensity. The major findings were that, first, promotion of environment-related tax increases green exports among HIC (high-income countries) and, second, an increase in the green trade of a country depends on the energy intensity level of its trading partner countries in order to stabilize domestic demand and production. This result is shown to be significant and consistent within the trade between the same income groups. Thus, supporting the green growth strategy, empirical results suggest that LMY (low-and middle-income) countries have to promote environmental policies and green production processes to be competitive in the global market.

Original languageEnglish
Article number1517
Pages (from-to)1-15
Number of pages15
JournalSustainability (Switzerland)
Issue number3
Publication statusPublished - 2021 Feb 1

Bibliographical note

Funding Information:
Funding: This research was supported by the BK21 FOUR (Fostering Outstanding Universities for Research) funded by the Ministry of Education (MOE) of Korea and the National Research Foundation (NRF) of Korea.

Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.


  • Environmental tax
  • Gravity model
  • Green growth
  • Green industry

ASJC Scopus subject areas

  • Computer Science (miscellaneous)
  • Environmental Science (miscellaneous)
  • Geography, Planning and Development
  • Energy Engineering and Power Technology
  • Hardware and Architecture
  • Management, Monitoring, Policy and Law
  • Computer Networks and Communications
  • Renewable Energy, Sustainability and the Environment


Dive into the research topics of 'Impacts of environmental policies on global green trade'. Together they form a unique fingerprint.

Cite this