Is environmental goods trade beneficial for the environmental performance of the concerned countries?

This paper examines the impacts of environmental goods (EGs) trade on environmental
performance of the concerned countries. The EGs have been disaggregated
into renewable energy, environmental monitoring analysis and assessment equipment,
and environmental protection and environmental preferable products. Environmental
performance has been classified into environmental health and ecosystem vitality. The
empirical analysis is carried out using data from the Asia Pacific Economic Cooperation
(APEC) member countries covering the period of 2007-2014. The empirical results
suggest positive impacts of EGs exports and imports on environmental performance.
While exports of environmental goods have significant beneficial impacts on
environmental health measure, the impact on ecosystem vitality measure is not
impressive. These results support the reduction in barriers on EGs trade, which has policy
implications towards increasing the technology, awareness, and environmental-regulation
effects, and minimizing the scale effect of EGs exports.