Environmental Engineering Reference
In-Depth Information
(ISIC). The income data were GDP per capita in 1985 nominal US dollars.
They found an inverted U-shaped relationship for pollution intensity per
unit of GDP, however, they did not i nd the same pattern for toxic inten-
sity per unit of industrial output. On the contrary, they found that manu-
facturing output increased steadily with income. They concluded that this
was the result of development in these countries, and, therefore, a shift
in the production structure from industry towards services, which were
lower in pollution. They also analysed the relationship of toxic intensity
and trade policy in less developed countries (LDCs) and they found that
the closer the country to international trade, the more rapid the growth of
toxic intensity of manufacturing. They concluded that, for the majority of
countries, there would be an increasing long-term trend of industrial emis-
sions, with respect to both GDP and manufacturing output. This would
also be higher in the poorer countries mainly due to the tighter environ-
mental regulations in the industrialized nations since 1970.
Grossman and Krueger (1991) also included a trade variable in their
study as they studied the ef ect of reduction in trade barriers on the envi-
ronment in Mexico and assessed the relative magnitudes of change in the
level of pollution resulting from further trade liberalization. They found
signii cant evidence that trade helped to reduce the level of pollution for
only one of the three pollution variables, which was urban concentrations
of SO
2
. Shai k and Bandyopadhyay (1992) tested the hypothesis that trade
induced the use of cleaner technology, and thereby would reduce pollution.
However, they found weak evidence between the two variables.
Rock (1996) studied the relationship between trade policy and the
environment in rich and poor countries using cross-country data over the
period 1973 to 1985. He used the pollution data on toxic chemical intensity
of GDP, which were previously used by Hettige et al. (1992) in their study.
However, he included two other variables: the manufacturing share of
GDP and the energy intensity of GDP. The i rst variable was included to
separate the ef ect of the broad composition of output on pollution inten-
sity from that of trade policy, while the latter was included to separate the
ef ect of energy price policy from trade policy. The trade orientation data
were taken from the World Bank (1987) where countries were grouped
into four categories depending on their trade policies. The four groups
were strongly outward-oriented, moderately outward-oriented, moder-
ately inward-oriented and strongly inward-oriented. He found evidence of
higher pollution intensity in countries with more open trade policies and
that the most inward-oriented developing countries had the lowest toxic
chemical pollution intensity of GDP.
The relationship between per capita income and consumption of
primary commercial energy was examined by Suri and Chapman (1998)
