Analysing International Trade in Green Goods: A Special Reference to the Case of India

We examine the implications of environmental stringency in the exports of India. We use the Combined List of Environmental Goods (CLEG) of 248 items by the OECD. The paper uses the gravity model to analyse the exports of green goods from India. Variables such as GDP for economic size and distance between India and its trade partners as a proxy for trade costs, and control variables, such as a regional trade agreement (RTA) have been used. Along with this, a variable of environmental stringency (EPS) has been used. Though India’s trade in environmental goods is small, the implications of this paper are important for our trade policy in exports of environmental goods.