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A Study of the Influence from Green Trade Barriers to Zhejiang Civilian-Run Enterprises Exports

Author: HouRuiHua
Tutor: ZhangJun
School: Guizhou College of Finance and Economics
Course: International Trade
Keywords: Green trade barrier Zhejiang civilian-run enterprise exports Carbon tarrif PPMs standards Smiling curve theory
CLC: F276.5;F224
Type: Master's thesis
Year: 2011
Downloads: 507
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Abstract

Climate warming had become global major issues since the global financial crisis in 2008 and the conflict between international trade and environment seemed particularly outstanding. It implied that the trend of global economy will emphasize low carbon ,environmental and green after the notion of carbon tariff was presented from <American Clean Energy and Security Act>.Under this kind of international situation,many green trade barriers have emerged in various forms .The study of the influence from green trade barrier to Zhejiang civilian-run enterprise exports was on the background of global warming and trade and environment problem highlights and the frequent emergence of green trade barriers. Zhejiang civilian-run enterprise exports was selected as the research subject because it presented a strong specific example of China’s export trade development and related economic theory used in this paper. There are five sections.The first section served as an introduction of the background and value of this study, research methods and the definition of green trade barriers and private enterprise. In the second section the paper elaborated upon the essence of green trade barriers by analyzing these forms of barriers in international trade and came to a conclusion of the green trade barriers produced by environment and trade which are reconcilable. Meanwhile the concept of carbon tariff was also explored.In the third section the author paid more attention to the influence from green trade barriers to Zhejiang civilian-run enterprises exports according to macro economic theory. First of all , the paper analyzed the status of Zhejiang civilian-run enterprises export based on the relative data which implied that its export products being with the features of labor intensive and low value-added and its main export markets were EU , Japan and America. Generally speaking Zhejiang civilian-run enterprises export is still emerging and remains weak and risky. Secondly, the paper selected EU, American and Japanese markets as research subjects to analyze all the presented forms of green trade barriers in the export trade of Zhejiang civilian-run enterprises.From the analysis we can know the WEEE, RoHS and EUP environmental directives, American green technology standards and Japanese green environment marks are rigor and conceal which will definitely cause the effect on Zhejiang civilian-run enterprises that it is difficult to estimate. According to the economic effects of green trade barriers theory and by analyzing quantity, cost and demand control mechanism in international trade, this paper came to a final conclusion that green trade barriers caused the following economic effects to export country and its manufactures which were trade restrictions, trade transfer and trade ban effect.In the short-term the green trade barriers can lead to deteriorating trade terms but in the long run it can produce trade promotion effect.Under the guidance of macroeconomic theory and combined with the status of Zhejiang civilian-run enterprises export,this paper analysed the influences from green trade barriers to export market access,terms of trade and export product structure of Zhejiang civilian-run enterprises export. Meanwhile,it also analysed the influences from PPMs standards and carbon tariffs.It is implied that all these different kinds of green trade barriers only can make a burden to exports enterprises and increased the cost of production and decreased the competitiveness of exports products in the short-term.The fourth section served as empirical analysis which using relative data and making the green trade barriers as a dummy variable to establish econometric model. According to ADF stationarity test,Johansen cointegration test and Granger causality test,this model made an estimated result by OLS method and come to a conclusion that the green trade barriers limited the export trade of zhejiang civilian-run enterprises in the short-term but will produce technological innovation effect in the long run which is coincidence with the conclusion made by economic theory and methods .In the final section,this paper put forward measures according to research conclusion and problems existed in zhejiang civilian-run enterprise exports.It should be taken a deep consideration.First of all,the zhejiang civilian-run enterprise should be dedicated to establish green trade barriers coping mechanism which demanding government, industry association and enterprise join up.Then the government should give a full play to its macro-control role and back the export enterprise.The industry association should give its full play to the role of the link and make sure theeffective communication and coordination among enterprises and government and other relevant organizations. The export enterprises should give play to its subjective initiative actively to respond to green trade barriers by building green production management and pay more attention to human resources and R&D input.

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