The Environmental Goods Trade between China and the EU: Development and Influencing Factors

Abstract

Purpose

This chapter seeks to analyze trade in environmental goods between China and the EU and highlight prominent problems and future opportunities.

Methodology/approach

We explore trade empirically, based on the definition of environmental goods proposed by OECD and database from UN COMTRADE (HS96).

Findings

We find that value of trade in environmental goods between China and the EU has increased from $2.759 billion in 1996 to $42.446 billion in 2012, with an average annual growth rate of 21%. Trade is concentrated in Germany, the Netherlands, Italy, France, and Belgium (together accounting for 82%). China has a trade deficit in most categories of environmental goods. Overall, although trade in environmental goods between China and the EU has increased rapidly, the trade structure is unbalanced and the competitiveness of China’s environmental goods trade is still low.

Practical implications

This chapter provides a robust basis for analysis of trade in environmental goods between China and the EU.

Originality/value

Discussions on environmental goods trade are complicated by a lack of clear definition and lack of consistent data. This chapter provides a clear and consistent data set in order to have a robust basis for analysis of this important phenomenon.

Citation

Qu, R. and Zeng, Y. (2016), "The Environmental Goods Trade between China and the EU: Development and Influencing Factors", Spigarelli, F., Curran, L. and Arteconi, A. (Ed.) China and Europe’s Partnership for a More Sustainable World, Emerald Group Publishing Limited, Leeds, pp. 25-37. https://doi.org/10.1108/978-1-78635-332-020161002