Identification of sources of changes to India's Exports of Environmental Goods and Services

Abstract

The increasing awareness of climate change and its impact on overall economic growth has encouraged many countries to pursue environmental friendly production and consumption of goods and services. Based on their comparative advantages, developing countries too are emerging as exporters of environmental goods and services (EGS) along with developed countries. An important question in this context is what are the sources ofconstraints to exports growth for these emerging EGS-exporting developing economies. Using data between 1996 and 2010, this paper identifies the constraints that India, which is one of the fast growing EGS exporting economies, faces for its EGS exports growth. The empirical results show that the growth of India's exports of EGS was negatively affected by its 'behind the border' constraints, while the reduction of India's trading paftnerst 'implicit beyond the border' constraints has made significant positive contribution to Indiat s exports of EGS, especially during the period of analysis.