International Trade, Lntranational Trade And Environment Pollution

With the rapid development of Chinese export-oriented economy, environmental degradation has reached the limits of domestic public tolerance since the reform and opening. Numerous studies have showed that the international trade have a serious negative impact on the domestic environment, fewer have paid attention to the relationship between the intranational trade and environmental pollution.This article attempts to combine international trade and intranational trade, analyzing the impact both on environmental quality in China.This paper sorts out the environmental effects into three effects following McAusland&Millimet (2012):the structural effect, the variety-induces income effect and the variety-induced substitution effect We constructs an empirical model concluding economic size, population density, foreign direct investment, environmental regulation, technological progress and industrial structure, analysisng28provinces’ panel data of China.Studies have shown that:(1)When the variety-induced substitution effect dominates, the development of international trade increases the emission of the Air, SO2,Smook and dust. When the structural effect and the variety-induces income effect dominate, it reduces the emission of the Water and Solid.(2) When the variety-induces income effect dominates, the development of intranational trade will reduce the emission of the Water, Solid and Dust; When the variety-induced substitution effect dominates, the development of intranational trade will increase the emission of the Air, SO2and Dust.(3) In terms of the eastern, central and western regions, international trade and intranational trade have different impacts on the six indicators of environment.The innovation in this paper is to join the intranational trade into the environmental effects analysis framework, unlike previous studies, which mostly focused on the environmental effects of international trade, making this study more practical significance.