A paper fit for any "globalisation and the environment" blog. This paper has everything as well as being written by fellow green economics blogger Matthew Kahn.
The results of this paper are exactly as I would have guessed which is always reassuring. What is more the conclusion is;
"trade is good for the environment".
Always a good result as a trade and environmental economist but one that the general public find trouble believing.
"International Trade in Used Durable Goods: The Environmental Consequences of NAFTA"
NBER Working Paper No. w14565
LUCAS W. DAVIS, University of Michigan at Ann Arbor - Department of Economics, National Bureau of Economic Research (NBER)
MATTHEW E. KAHN, University of California, Los Angeles (UCLA)
Previous studies of trade and the environment overwhelmingly focus on how trade affects where goods are produced. However, trade also affects where goods are consumed. In this paper we describe a model of trade with durable goods and non-homothetic preferences. In autarky, low-quality (used) goods are relatively inexpensive in high-income countries and free trade causes these goods to be exported to low-income countries. We then evaluate the environmental consequences of this pattern of trade using evidence from the North American Free Trade Agreement. Since trade restrictions were eliminated for used cars in 2005, over 2.5 million used cars have been exported from the United States to Mexico. Using a unique, vehicle-level dataset, we find that traded vehicles are dirtier than the stock of vehicles in the United States and cleaner than the stock in Mexico, so trade leads average vehicle emissions to decrease in both countries. Total greenhouse gas emissions increase, primarily because trade gives new life to vehicles that otherwise would have been scrapped.