International Trade Resources

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Abstract

But at the same time trade can be environmentally damaging by encouraging higher overall resource production and use, shifting production to countries with lower environmental standards, and raising energy use and pollution linked to transportation. In order to determine whether world trade leads to a more efficient allocation of resource extraction and use, this study examines the so-called ‘‘upstream resource requirements’’ of traded commodities. These take into account the additional materials, energy, water and land used in the extraction and production of traded goods, but left behind as wastes and emissions in the exporting country.