ECONOMIC GROWTH, BILATERAL TRADE AND TRADE EMBODIED PM2.5 EMISSIONS IN INDIA AND BANGLADESH

Abstract

Not all that is produced is consumed by the country a major part of produced goods and services account for exports. In today’s world of globalization volumes of export and import are increasing and so is the emission from production and consumption. So, with exports and imports of goods and services, indirect emissions are also traded by being embodied in the goods and services. Production-based and consumption-based accounting approaches are two different approaches to measuring emissions produced. Using PBA, developed countries can transfer the burden of emissions to developing nations, but CBA measures the emissions based on consumption. The study investigates the impact of the rise in investment in India (and Bangladesh) on PM2.5 emissions being produced in Bangladesh (and India) via international trade and quantifies it. Bangladesh is about to graduate from LDC status, which means that high tariffs are being imposed on Bangladeshi goods, an attempt is made to study the impact of the rise in tariffs on PM2.5 emissions produced and quantifies the change. The results indicate that with tariffs being imposed emissions fall in the case of the EU, Japan, and Oceania but not true with the US. Some policy implications are suggested on the same