Trade liberalization and the environment: Evidence from NAFTA and U.S. manufacturing

In this article, the effects of NAFTA on particulate matter (PM10) and sulfur dioxide (SO2) emissions from factories in the United States are estimated. The findings in the study suggest that trade liberalization has led to significant reductions of these pollutants in the affected factories. On average, nearly two-thirds of the PM10 reductions and SO2 emissions at U.S. factories between 1994 and 1998 can be attributed to trade liberalization after NAFTA.

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