APEC's exports of environmental goods: an exploratory analysis of performance

Abstract

Understanding the determinants of Environmental goods (EGs) trade is imperative for trade promotion and environmental protection. As the impacts of the determinants differ among EGs subgroups and countries, examining these determinants for each subgroup is necessary for policy recommendations. Export performances measured in terms of export efficiency using the stochastic frontier gravity model and data from APEC from 2007 to 2014 suggest that, albeit, the efforts in tariff reduction of APEC, do not appear to have reduced the constraints to increasing export efficiency of EGs trade over the period of analysis. Through the APEC regional cooperation, there is an urgent need to transfer technology in EGs to those countries with poor export efficiency from those countries enjoying the high level of realization of export efficiency including Japan, USA, China, and Canada.