The Effects of International Trade on the Environment

In this thesis, the effects of international trade on the environment are examined. This thesis consists of a replications study and an extension part. The replication study focuses on a replication of the study by Antweiler, Copeland and Taylor (2001) “Is free trade good for the environment”. When considering the scale, composition and technique effects in the replication study, international trade turns out to have a negative effect on the environment. In the extension part, a country’s three most important trading partners are added to the study. When considering a country’s three most important trading partners, international trade also has a negative effect on the environment of the domestic country.