Trade liberalization, consumption shifting and pollution: Evidence from Mexico's used vehicle imports

Arbeitspapier

This paper develops a model of used vehicle trade between countries with different environmental regulations regarding vehicle emissions. We show that the US, given its strict environmental regulations, has incentives to export used vehicles to Mexico, which impacts air pollution emissions caused by automobile driving in Mexico. Using a unique database on vehicle registration in Mexico and imports after the NAFTA enactment, we find that Mexico's used vehicle imports reduced average pollution emissions generated by vehicles, mainly due to the "technique effect"-differences in emissions of vehicles of comparable model and age between those that operate in the US before being imported (that emit less pollutants) and those operating in Mexico.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 2022-02

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Automobiles; Other Transportation Equipment; Related Parts and Equipment ; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth ; Valuation of Environmental Effects
• Subject: Trade Liberalization ; Used Vehicles ; Pollution Emissions ; Technique Effect

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chen, Liang ; Garcia-Medina, Cecilia ; Wan, Rui
• Event: Veröffentlichung
• (who): Banco de México
• (where): Ciudad de México
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/251299
• Last update: 10.03.2025, 11:41 AM CET