Feng, Zhixuan; Liu, Fengyi
A icle
Te ms o ade, ecologically unequal exchange and
en i onmen al p oblems in de eloping economies
China Poli ical Economy (CPE)
P o ided in Coope a ion wi h:
School o Economics, Nanjing Uni e si y
Sugges ed Ci a ion: Feng, Zhixuan; Liu, Fengyi (2024) : Te ms o ade, ecologically unequal exchange
and en i onmen al p oblems in de eloping economies, China Poli ical Economy (CPE), ISSN
2516-1652, Eme ald, Leeds, Vol. 7, Iss. 2, pp. 244-268,
h ps://doi.o g/10.1108/CPE-12-2024-047
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Te ms o ade, ecologically unequal
exchange and en i onmen al p oblems
in de eloping economies
Zhixuan Feng
Economics and Managemen o School, Wuhan Uni e si y, Wuhan, China, and
Fengyi Liu
School o Ma xism, Nankai Uni e si y, Tianjin, China and
Na ional Resea ch Cen e o Poli ical Economy o Socialism wi h Chinese
Cha ac e is ics, Nankai Uni e si y, Tianjin, China
Abs ac
Pu pose –U ilizing he Ma xis heo y o unequal exchange o explain he e ms o ade be ween na ions, his
pape elucida es one possible mechanism ha gi es ise o ecologically unequal exchange be ween de eloped
and de eloping economies.
Design/me hodology/app oach –We p opose a wo-sec o linea p oduc ion model and demons a e ha a
dec ease in he o ganic composi ion o capi al and an inc ease in he a e o su plus alue in a sec o will lead o a
ela i e p ice dec ease and alue ans e ou o ha pa icula sec o , as well as inc easing he en i onmen al
cos s o ade. Fu he mo e, we measu e he le els o unequal exchange ( alue ans e ) and ecologically
unequal exchange o 40 economies and empi ically alida e hei ela ionship.
Findings –The indings sugges ha an impo an cause o he ecologically unequal exchange is he alue
ans e be ween economies caused by he in e na ional di ision o labo and eal wage dispa i ies. The
inequali y in in e na ional ade is a signi ican ac o con ibu ing o he gap in he ecological en i onmen le el
be ween de eloped and de eloping economies.
O iginali y/ alue –By in oducing he heo y o unequal exchange o alue ans e in o he analysis o
ecological unequal exchange, we p o ide a ma hema ical amewo k o analyzing ecological unequal exchange
and a me hod o calcula ing he scale o ecological unequal exchange and alue ans e , he eby enhancing he
heo e ical dep h and p ac ical signi icance o he ecological unequal exchange heo y.
Keywo ds Ecologically unequal exchange, Unequal exchange, Te ms o ade
Pape ype T ansla ed pape
1. In oduc ion
In ecen yea s, many de eloping economies, exempli ied by China, ha e expe ienced apid
indus ializa ion and economic g ow h, accompanied by inc eased esou ce exploi a ion and
moun ing en i onmen al p essu es, while de eloped economies ha e signi ican ly imp o ed
hei ecological en i onmen s du ing his pe iod. Neoclassical economis s ha e in oduced
se e al heo e ical pe spec i es, including he En i onmen al Kuzne s Cu e (EKC) and he
“Pollu ion Ha en” hypo hesis, o add ess he widening en i onmen al dispa i ies be ween he
Global No h and Sou h, all o which end o iew en i onmen al p oblems in de eloping
economies as in insic o hose economies, whe he i is he EKC’s iew on he de elopmen al
s age o he de eloping economies o he pollu ion ha en hypo hesis’s emphasis on he lack o
s ingen en i onmen al egula ion in de eloping economies. Howe e , some Ma xis
economis s hold di e gen pe spec i es. They a gue ha hese neoclassical heo ies o e look
CPE
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244
© Zhixuan Feng and Fengyi Liu. O iginally published in Simpli ied Chinese in The Jou nal o Wo ld
Economy in 2019: Feng, Z. and Liu, F. (2019), “Ecological Unequal Exchange, Value T ans e and
En i onmen al P oblems in De eloping Economies”, The Jou nal o Wo ld Economy, Vol.42 No.4, pp
3-28. DOI: 10.19985/j.cnki.cassjwe.2019.04.002
The wo k desc ibed in his pape is unded by he Philosophy and Social Science Founda ion o China
(No. 17AJL001).
This is a ansla ion o an a icle o iginal pos a : h ps://doi.o g/10.19985/j.cnki.cassjwe.2019.04.002
The cu en issue and ull ex a chi e o his jou nal is a ailable on Eme ald Insigh a :
h ps://www.eme ald.com/insigh /2516-1652.h m
Recei ed 30 Sep embe 2024
Accep ed 30 Sep embe 2024
China Poli ical Economy
Vol. 7 No. 2, 2024
pp. 244-268
Eme ald Publishing Limi ed
2516-1652
DOI 10.1108/CPE-12-2024-047
he c ucial “cen e -pe iphe y” s uc u e unde economic globaliza ion in he capi alis wo ld
sys em (P ebisch, 1959;Dos San os, 1999). When examining he en i onmen al dispa i ies
be ween he Global No h and Sou h wi hin he amewo k o he cen e -pe iphe y s uc u e, i
becomes e iden ha en i onmen al deg ada ion in de eloping economies canno be
a ibu ed solely o hei cha ac e is ics; de eloped economies also play a signi ican ole in
his phenomenon.
The EKC hypo hesizes ha changes in he ecological en i onmen a e p ima ily a ibu ed
o he a ying s ages o economic de elopmen . Economies unde going indus ializa ion
expe ience en i onmen al deg ada ion due o he ise o manu ac u ing ac i i ies, while
economies ha ha e comple ed he indus ializa ion p ocess end o ha e less en i onmen al
p essu e due o imp o emen s in manu ac u ing en i onmen al e iciency and a g adual shi
owa ds a se ice-based economy (Becke man, 1992;De B uyn e al., 1998;Dinda, 2004;Lin
and Jiang, 2009;Xu and Song, 2010;Sheng and Lyu, 2012). This model desc ibes he
ajec o y o de eloped economies; howe e , i emains unce ain whe he de eloping na ions
can eplica e his p ocess (Røpke, 1994;Cla k and Fos e , 2009;Bonds and Downey, 2012).
The inc ease in en i onmen al e iciency in he p oduc ion p ocesses wi hin de eloped
economies is no solely a ibu able o echnological p og ess, as a signi ican po ion o his
imp o emen is due o he ans e and ou sou cing o highly pollu ing sec o s o de eloping
economies. Besides, he se i iza ion o he economy gains esul ing om “de-
indus ializa ion” a e pa ially due o he o sho ing o low-end manu ac u ing. These
p ocesses a e no easily eplicable in de eloping economies (Ande sson and Lind o h, 2001;
Lynch, 2016).
In compa ison, he pollu ion ha en hypo hesis seems o cap u e he co e issue by
emphasizing he eloca ion o pollu ing sec o s, which posi s ha he lack o s ingen
en i onmen al egula ion in de eloping economies makes hese egions mo e a ac i e o
high-pollu ion sec o s. Such heo ies highligh ha he en i onmen al dispa i ies be ween he
Global No h and Sou h esul om en i onmen al bu den edis ibu ion (B unne meie and
Le inson, 2004;Khede and Zug a u, 2008;Wagne and Timmins, 2009;Lei e e al., 2011;
Yang and Tian, 2017). Howe e , hese heo ies do no adequa ely add ess he unde lying
ques ion: Wha causes hese unde de eloped economies o be mo e inclined o p o ide a
lenien egula o y en i onmen o pollu ing en e p ises? I he e is a sys ema ic dispa i y in
egula o y s ingency be ween he Global No h and he Sou h, i may sugges endogenei y o
en i onmen al egula ion (Goldman, 2006;B and e al., 2008).
Eco-Ma xis schola s, such as Ho nbo g (1998,2009,2014),Ande sson and Lind o h
(2001),Rice (2007), and Robe s and Pa ks (2009), ha e mo ed beyond his line o hinking
ha a ibu es ecological dispa i ies be ween he Global No h and Sou h solely o he inhe en
cha ac e is ics o indi idual economies. Ins ead, hey di ec ly poin o he s uc u al o he
wo ld ma ke as he p ima y explana o y ac o . They a gue ha al hough in e na ional ade
adhe es o he p inciple o equi alen exchange, he en i onmen al cos s associa ed wi h a
gi en ade olume measu ed in mone a y e ms di e signi ican ly be ween de eloped and
de eloping economies. This sugges s ha de eloped economies exchange goods p oduced a a
lowe en i onmen al cos o goods wi h a highe en i onmen al cos om de eloping
economies. This phenomenon mi o s he Ma xian concep o “unequal exchange,” whe e
de eloped economies exchanging less labo o mo e labo in de eloping economies in
in e na ional ade. Simila ly, he ade dynamics in which de eloped economies bene i om
i s goods wi h lowe en i onmen al cos s a he expense o highe en i onmen al cos s in
de eloping economies is called “ecologically unequal exchange.”
The phenomenon o ecologically unequal exchange appea s closely ela ed o he
echnological dispa i y be ween he Global No h and he Global Sou h. I de eloped
economies employ cleane echnologies, he en i onmen al cos s embedded in hei p oduc s
will na u ally be lowe . Consequen ly, hese economies would ade lowe en i onmen al cos s
o highe en i onmen al cos s o de eloping economies. Howe e , some ecological Ma xis
schola s a gue ha his seemingly easonable explana ion is insu icien . Conside ha when
China Poli ical
Economy
245
de eloped and de eloping coun ies p oduce homogeneous p oduc s, he e is indeed a
di e ence in en i onmen al e iciency o he same p oduc . De eloped economies can
manu ac u e a p oduc wi h lesse en i onmen al cos s, sugges ing ha ecologically unequal
exchange me ely e lec s echnological di e ences be ween he Global No h and he Global
Sou h. Howe e , in mos cases, in e na ional ade be ween hese egions o en in ol es
he e ogeneous p oduc s, and he echnologies used o p oduce di e en p oduc s a e no
di ec ly compa able, necessi a ing a common uni o measu emen : money. Whe he a p oduc
is esou ce- o en i onmen ally in ensi e can essen ially only be measu ed by he amoun o
esou ces and en i onmen al cos pe mone a y uni o i . I he p ice o a kind o p oduc is
sys ema ically supp essed, he ecological cos inhe en in a gi en amoun o mone a y ou pu
ine i ably inc eases. Thus, p icing plays a c ucial ole in de e mining whe he a p oduc ion
echnology is “clean”. Nume ous s udies indica e ha p oduc s om de eloping economies
a e p iced lowe , esul ing in a g ea e ecological bu den o hese economies in ade
exchanges (Ande sson and Lind o h, 2001;Røpke, 2001;Shand a e al., 2009;F ey e al.,
2019). In addi ion o he acknowledged echnological gap, ecological Ma xis schola s also
iden i ied a c ucial co ela ion be ween he p ice issue in he ade and he ecological
dispa i ies be ween he Global No h and Sou h.
The ecologically unequal exchange e eals he ela ionship be ween sec o al p ice ac o s
and he esou ce o en i onmen al in ensi y o he sec o s. This ela ionship also elucida es a
c i ical sou ce o he endogenei y o egula o y s ingency posi ed by he pollu ion ha en
hypo hesis. Despi e simila echnical le els be ween he Global Sou h and No h, indus ies in
de eloping economies may exhibi ela i ely in e io en i onmen al pe o mance and highe
esou ce in ensi y due o hei gene ally lowe p oduc p ices han hose om de eloped
economies. Consequen ly, i is no a ma e o de eloping economies ole a ing mo e pollu ing
sec o s pe se. As long as he e ms o ade be ween he No h and Sou h emain unchanged,
he pollu ion le els o i ms in de eloping economies, when measu ed in mone a y e ms, will
always su pass hose in de eloped economies ega dless o how s ingen hei egula ions
migh be. This implies ha de eloping economies a e simply compelled o “ ole a e” hei
local indus ies. Howe e , me ely iden i ying he ela ionship be ween ecologically unequal
exchange and p ice ac o s is insu icien . The de ini ion o ecologically unequal exchange
implies ha he en i onmen al cos s in equi alen mone a y amoun s di e in di e en
coun ies. The c ux o he issue lies in unde s anding why p ices ail o adequa ely e lec
en i onmen al cos s o why he p oduc p ices in de eloping economies a e sys ema ically
lowe han hose in de eloped economies.
The e a e wo main pe spec i es in he li e a u e add essing his issue. One ollows he
P ebisch-Singe hypo hesis, u ilizing he echnological na u e o he in e na ional di ision o
labo o explain he de e io a ion o e ms o ade o de eloping economies (P�
e ez-Rinc�
on,
2006). The p ima y challenge wi h his explana ion is ha he P ebisch-Singe hypo hesis
assumes ha co e economies supply indus ial goods and pe iphe al economies p o ide aw
ma e ials and p ima y p oduc s. Howe e , as p e iously no ed, we a e cu en ly dealing wi h
he apid indus ializa ion o de eloping economies and he accompanying en i onmen al
p oblems. The e o e, hese assump ions no longe ully apply o he p esen global sys em.
An al e na i e pe spec i e in ol es le e aging he monopolis ic powe o de eloped
economies in he global ma ke , posi ing ha dis o ions in e ms o ade s em om such
ma ke powe (Ande sson and Lind o h, 2001;Røpke, 2001;Taylo e al., 2016). While i is
ue ha de eloped economies possess monopolis ic powe in he global ma ke , his iew
only applies o e y limi ed si ua ions. Con empo a y poli ical economy heo ies
p edominan ly asse ha he global ma ke emains highly compe i i e. Lenin (2015)
poin ed ou ha he de elopmen o capi alism in o i s monopoly s age does no e adica e
compe i ion bu c ea es new compe i ion a a highe le el. This iew has been consis en ly
upheld by subsequen schola s s udying monopoly capi alism. E en he Monopoly Capi al
School, which ocuses hea ily on issues o monopoly, posi s ha monopoly is a domes ic
cha ac e is ic o de eloped economies pos -Wo ld Wa II, which canno be di ec ly applied o
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he global ma ke , and a gues ha monopolis s om a ious economies ace e en ie ce
compe i ion in he in e na ional a ena (Ba an and Sweezy, 1977;Sweezy, 1997;Fos e e al.,
2011). Fundamen ally, as Gao (1996) no ed, exploi a ion and compe i ion a e capi alism’s wo
undamen al ela ionships. Compe i ion among di e en capi als, each pu suing capi al
p oli e a ion, is ine i able. Empi ical esea ch on con empo a y capi alism also suppo s he
eali y o a highly compe i i e global ma ke (B enne , 2003,2006;Sheppa d, 2012;Se e is
and Tsaliki, 2016;Tsaliki e al., 2017).
The app oaches abo e ail o ully explain he dispa i y in commodi y p ices be ween he
Global No h and Sou h on he global ma ke and hus ail o p o ide a comple e and solid
heo e ical explana ion o ecologically unequal exchange. The p ima y con ibu ion o his
pape lies in p oposing a no el amewo k ha di e s om he p e ious wo, he eby o e ing
a sound explana ion o he ela ionship be ween ecologically unequal exchange and p icing.
This pape in eg a es he heo ies o unequal exchange and alue ans e in o he analysis
o ecologically unequal exchange. This app oach has wo signi ican ad an ages o e he p io
app oaches: Fi s , i is g ounded on weake and mo e ealis ic assump ions o he in e na ional
di ision o labo , as i a ibu es he commodi y p ice di e ences be ween Global No h and
Sou h o dispa i ies in he o ganic composi ion o capi al and su plus alue a es o he no h
and he sou h, a oiding he speci ic indus y assump ions inhe en in he P ebisch-Singe
hypo hesis. Second, i is based on he heo y o p o i equaliza ion; he eby, he heo e ical
ounda ion is based on compe i i e global ma ke s a he han monopolis ic ones.
Fi s , his pape p o ides a ma hema ical amewo k o analyzing ecologically unequal
exchange. I is he i s o igo ously desc ibe ecological unequal exchange unde Okishio-
Mo ishima’s linea p oduc ion amewo k, using de ia ions be ween p oduc ion p ices and alues
o cha ac e ize alue ans e . Based on i , his pape explains he condi ions unde which alue
ans e and ecologically unequal exchange occu and elucida es hei heo e ical in e connec ion.
Fu he mo e, his pape p esen s an enhanced measu emen me hodology o assessing
alue ans e and ecologically unequal exchange. On his basis, i i s ly uses in oduces
eg ession analysis o empi ically alida e he eal-wo ld associa ion be ween alue ans e
and ecologically unequal exchange be ween he Global No h and Sou h.
The s uc u e o he pape is as ollows: he second sec ion elabo a es on he heo e ical
amewo k and model cons uc ion; he hi d sec ion explo es he me hods o assessing alue
ans e and ecologically unequal exchange; he ou h sec ion de ails he eg ession model
speci ica ions and da a sou ces; he i h sec ion analyzes he eg ession esul s; and he inal
sec ion concludes he s udy.
2. Theo e ical amewo k
2.1 The heo e ical connec ion be ween alue ans e and ecologically unequal exchange
As s a ed in he i s sec ion, a signi ican cause o ecologically unequal exchange is he p ice
dispa i y be ween he Global Sou h and No h. T adi ional unequal exchange heo ies explain
his sys ema ic p ice dispa i y h ough he labo heo y o alue. Acco ding o he undamen al
p inciples o he labo heo y o alue, i goods a e exchanged a hei alue, i.e. he socially
necessa y labo ime, en e p ises wi h labo p oduc i i y equal o he sec o a e age should
ha e equi alen pe capi a ou pu o alue-added. Howe e , in a pe ec compe i i e ma ke
wi h un es ic ed capi al mobili y be ween sec o s, he unimpeded low o capi al will esul in
p o i equaliza ion ac oss sec o s. Consequen ly, sec o s wi h a highe o ganic composi ion o
capi al o a lowe a e o su plus alue will ha e p ices ha exceed hei alues, while he
opposi e will be ue o o he sec o s. This de ia ion o p ice om alue gene a es a alue
ans e . The alue ans e implies ha e en i he ela i e labo p oduc i i y le els o
en e p ises in each sec o a e simila , he pe capi a alue added o en e p ises in he alue-
ecei ing sec o and hose in he alue- ans e ing sec o a e comple ely di e en . Wo ke s in
he la e sec o ha e o exe mo e labo o achie e he same alue added as hose in he o me
sec o (Ma x, 2004a,b).
China Poli ical
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The heo y o unequal exchange le e ages he concep o alue ans e . Baue (2000) and
G ossmann (1992) posi ed ha de eloped capi alis economies hold ad an ageous posi ions in
he in e na ional di ision o labo due o hei capi al abundance, engaging in sec o s wi h a
highe o ganic composi ion o capi al and he eby bene i ing om his alue ans e .
Emmanuel (1988) a gued ha eal wages in de eloped economies a e highe , implying a lowe
a e o su plus alue. Following hese lines o hough , subsequen schola s ha e conduc ed
ex ensi e heo e ical and empi ical esea ch and con i med he exis ence o unequal exchange
(Gibson, 1980;Foo and Webbe , 1983;Nakajima and Izumi, 1995;Tsaliki e al., 2017).
Consequen ly, when labo p oduc i i y le els a e simila , en e p ises in de eloping economies
gene a e lowe pe capi a added alue compa ed o hose in de eloped economies and need o
in es mo e labo o achie e he same mone a y e u ns as hose in de eloped economies.
The e o e, de eloped economies u ilize less labo in exchange o mo e labo om de eloping
economies (Feng, 2016a).
Acco ding o he logic o ecologically unequal exchange men ioned abo e, i he e a e
in e na ional di e ences in p ices, hen i is e iden ha de eloping economies incu highe cos s
in hese exchanges. Gi en simila e iciency in he p oduc ion en i onmen o p oduc s,
de eloping economies need o use a la ge quan i y o hei p oduc s — because o lowe pe
capi a alue added — o exchange o ewe p oduc s om de eloped economies. Consequen ly,
his exchange esul s in exchange o a la ge en i onmen al cos in de eloping coun ies o a
smalle en i onmen al cos in de eloped coun ies. The e o e, ega ding equi alen mone a y
ou pu s, de eloping economies exhibi poo e en i onmen al e iciency.
In summa y, di e ences in he o ganic composi ion o capi al and wage lead o in e na ional
alue ans e . When such alue ans e s occu , ecologically unequal exchanges accompany
hem. This pape aims o es his heo y by cons uc ing a model ha add esses wo key ques ions:
Fi s , does an inc ease in he o ganic composi ion o capi al and eal wages lead o alue ans e ?
Second, i alue ans e occu s unde hese condi ions, does ecologically unequal exchange also
occu ? I he answe o bo h ques ions is yes, hen we can iden i y a heo e ical link be ween alue
ans e s and ecologically unequal exchange. While he answe s o hese ques ions may seem
s aigh o wa d, hey a e mo e complex. A leas wo poin s o ambigui y a e p esen .
Fi s , hough he ise in he o ganic composi ion o capi al does lead o an inc ease in
p oduc ion p ices, i also signi ies a ela i e g ow h o ma e ialized labo compa ed o li ing
labo . The e o e, al hough p oduc ion p ices go up, he alue embodied in he commodi ies
also inc eases. I he newly added alue exceeds he inc ease in p oduc ion p ice, an inc ease in
he o ganic composi ion o capi al may also lead o a ans e ou o alue. Simila ly, in he
con ex o ecologically unequal exchange, he ise in he o ganic composi ion o capi al
implies ha he ecological cos s embedded in he means o p oduc ion inc ease ela i e o
di ec ecological cos s, he eby inc easing he o e all ecological cos o he p oduc . I he
change in e ms o ade esul ing om he ise in p oduc ion p ices ails o o se he inc eased
ecological cos s, i may indica e ha he inc eased o ganic composi ion o capi al does no
enable he sec o o exchange lowe ecological cos s o highe ones.
Second, an inc ease in eal wages no only leads o a decline in he a e o su plus alue,
esul ing in a ise in he p oduc ion p ice ela i e o alue bu also exe s an addi ional impac
by educing he o ganic composi ion o capi al, which may lowe p oduc ion p ices.
The e o e, i is impe a i e o cons uc a ma hema ical model o analyze which o hese wo
opposing e ec s o he o ganic composi ion o capi al and he a e o su plus alue is dominan
unde a ious condi ions, he eby de e mining he speci ic condi ions unde which he o ganic
composi ion o capi al and eal wages can lead o alue ans e and ecologically unequal
exchange.
2.2 Basic se ings o he model
Fo he sake o cla i y and simplici y o he model, we cons uc an Okishio–Mo ishima model
cha ac e izing 2 sec o s 32 p oduc s 32 economies. Assume he e a e 2 sec o s and 2
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economies, wi h each economy engaging in one sec o , and each sec o p oduces one ype o
p oduc . To discuss alue ans e and ecologically unequal exchange, we need o es ablish
h ee se s o equa ions o ep esen he alue sys em, en i onmen al inpu and p oduc ion p ice
sys em, espec i ely. The alue sys em is de ined by
a11λ1þa12λ2þl1¼λ1(1)
a21λ1þa22λ2þl2¼λ2(2)
o in ma ix o m:
Aλ þl¼λ
whe e aij ep esen s he in e media e inpu coe icien , i.e. he means o p oduc ion, deno ing
he quan i y o p oduc j equi ed o p oduce one uni o p oduc i;li he di ec labo inpu
coe icien , indica ing he amoun o li ing labo equi ed o p oduce one uni o p oduc iand
λi he uni alue o p oduc i. The in e media e inpu and he di ec labo inpu coe icien s a e
exogenously de e mined by he espec i e sec o ’s echnology (Mo ishima, 1973).
Based on equa ions (1) and (2), he uni alues o he wo commodi ies a e de i ed as:
λ1¼ ½l1ð1�a22Þþa12l2�jI�Aj−1
λ2¼ ½l2ð1�a11Þþa21l1�jI�Aj−1
whe e Iis he second-o de uni ma ix.
The en i onmen al inpu sys em can be ep esen ed simila ly o he alue sys em in an
inpu -ou pu amewo k as ollows:
a11e1þa12e2þ 1¼e1(3)
a21e1þa22e2þ 2¼e2(4)
o ep esen ed in ma ix o m:
Ae þ ¼e
whe e ideno es he di ec en i onmen al inpu coe icien , ep esen ing he amoun o di ec
en i onmen al inpu equi ed o p oduce one uni o p oduc i. To main ain gene ali y, we ha e
no speci ied wha ype o en i onmen al inpu iis. The o al en i onmen al inpu equi ed o
p oduce one uni o p oduc iis deno ed by ei. The in e media e inpu and di ec en i onmen al
inpu coe icien s a e exogenously gi en echnological a iables.
Simila ly, we can de e mine he o al en i onmen al inpu pe uni o p oduc o he wo
sec o s by sol ing equa ions (3) and (4):
e1¼ ½ 1ð1�a22Þþa12 2�jI�Aj−1
e2¼ ½ 2ð1�a11Þþa21 1�jI�Aj−1
Rega ding he p oduc ion p ice sys em, we assume ha he quan i y o consump ion goods
equi ed pe uni o labo ime is exogenously gi en acco ding o he heo y o he alue o
labo (Ma x, 2004a), hus:
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½ðaj j11þb11l1Þp1þða12 þb12l1Þp2�ð1þ Þ ¼ p1(5)
½ðaj j21þb21l2Þp1þða22 þb22l2Þp2�ð1þ Þ ¼ p2(6)
whe e bij ep esen s he quan i y o consump ion good j equi ed pe uni o labo o he
p oduc ion o p oduc i;Pjbijpj he wage ob ained by he wo ke pe uni o labo unde he
p oduc ion p ice condi ions (bij is exogenously gi en); pi he p oduc ion p ice o one uni o
p oduc in sec o i; and he a e age p o i a e. Since we a e only conce ned wi h he ela i e
p ices o he wo sec o s, i.e. p¼p1=p2, we can elimina e one unknown a ie y wi h he
ela i e p ice, esul ing in a pe ec ly-iden i ied model. Fo simplici y, we de ine he o al
quan i y o p oduc j equi ed o one uni o p oduc ias cij ¼aij þbijli. Based on he abo e
poin s, equa ions (5) and (6) a e eo ganized in o:
ðc11pþc12Þð1þ Þ ¼ p(7)
ðc21pþc22Þð1þ Þ ¼ 1 (8)
Acco ding o equa ions (7) and (8), he economically meaning ul ela i e p ice can be
exp essed as [1]:
p¼�ðc11 �c22Þþ i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q��2c21
2.3 Condi ions o alue ans e and ecologically unequal exchange
In his sec ion, we explo e how he change in he o ganic composi ion o capi al and he a e o
su plus alue impac alue ans e and unequal ecological exchange. Unde he cu en model
amewo k, he ep esen a ions o he o ganic composi ion o capi al and su plus alue a e a e
ai ly in ica e, and hei ela ionships wi h alue, en i onmen al inpu and p oduc ion p ice
exp essions a e a he indi ec . The e o e, we need o seek new ways o exp ess changes in he
o ganic composi ion o capi al and he su plus alue a e.
In heo y, change in he o ganic composi ion o capi al essen ially esul s om he a ia ion
in ma e ialized labo , i.e. he means o p oduc ion ela i e o li ing labo . In ou model, he
means o p oduc ion a e ep esen ed by in e media e inpu s. Hence, ce e is pa ibus, change in
he in e media e inpu coe icien , aij, indica es he change in ei he ma e ialized labo o
cons an capi al. An inc ease in aij implies an inc ease in ma e ialized labo , whe he ela i e o
he alue o labo powe o he o al li ing labo . The e o e, o s udy he o ganic composi ion o
capi al, we ocus on he change in aij.
Rega ding he a e o su plus alue, gi en a speci ic le el o labo p oduc i i y, bo h he
amoun o di ec labo inpu and he alue o labo powe will impac i . Since he heo y o
unequal exchange p ima ily a ibu es he p ice le el dispa i ies be ween de eloped and
de eloping economies o wage dispa i ies, we mainly conside he impac o labo powe alue
on he a e o su plus alue. Ob iously, unde he ce e is pa ibus condi ion, he highe he
numbe o consump ion goods included in he alue o labo powe , i.e. he eal wages, he
highe he alue o labo powe and he lowe he a e o su plus alue. The e o e, o he a e o
su plus alue, we p ima ily conside he change in bij.
(1) Value ans e
We de ine ¼p−λ1=λ2as he a iable ep esen ing alue ans e . Ob iously, he la ge , he
g ea e he ela i e p oduc ion p ice o commodi y 1 compa ed o i s ela i e alue, pu ing i s
p oduce in a mo e ad an ageous posi ion in he alue ans e p ocess.
Fi s , o examine he impac o he change in he consump ion goods o wo ke s, we ha e
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� b11 ¼l10
B
@1þc11 �c22
i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q1
C
A,2c21
and
� b12 ¼l1� i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q
Ob iously, = b12 >0. Mo eo e , gi en ha c11 −c22∨ i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q, hen
−1<ðc11 −c22Þ= i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q<1and = b11 >0. The e o e, we ha e he
ollowing in e ences.
In e ence (1). Gi en a sec o , all else being equal, an inc ease in he ac ual wages o i s
wo ke s will lead o a ise in he p oduc ion p ice ela i e o he alue in ha
sec o .
Nex , we conside he impac o means o p oduc ion aij. The i s o conside is he change in
a11. Due o he highly complex s uc u e o = a11, o a oid unnecessa y complexi y, we
examine a mono onically inc easing unc ion 0o : 0¼p=ðλ1=λ2Þ, unde he condi ions
p>0and λi>0. Since he de i a e o unc ion 0and ha e he same sign, we ha e
0
a11 ¼½ðc11 �c22Þþ i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q�a21l1þl2ð1�a11Þ�l2 i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q�
2c21½a12l2þl1ð1�a22Þ� i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q
Ob iously, excep o a21l1þl2ð1−a11Þ−l2 i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q, all e ms in he abo e
equa ion a e g ea e han 0, so he sign o 0= a11 is decided by he sign o his exp ession.
In addi ion, he impac o a12 should be conside ed, hen we ha e
a12 ¼a21l1þl2ð1�a11Þ�l2 i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q
½a21l1þl2ð1�a11Þ� i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 �c22Þ2
q
We ha e ound ha he sign o = a12 also depends on he exp ession a21l1þl2ð1−a11Þ
−l2 i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q, which indica es ha a ise in he p opo ion o means o
p oduc ion in sec o 1 will lead o a ise in he p oduc ion p ice ela i e o he alue only i his
exp ession is g ea e han ze o. Gi en ha he inequali y is no in ui i ely clea , we p o ide a
su icien condi ion o i o hold, he eby elucida ing i s po en ial economic signi icance.
P oposi ion (1). I c21=c22 <c11=c12, and l1=l2>ð1−a22 −c11 −c22Þ=a21, hen a21l1
þl2ð1−a11Þ−l2 i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q>0.
The implica ion o p oposi ion (1) is ha gi en a highe p opo ion o he ou pu o he Sec o 1
used by Sec o 1 ela i e o Sec o 2, he a io o he coe icien s on labo inpu s in Sec o 1 o
hose in Sec o 2 should no all below a gi en alue i he inc ease in he means o p oduc ion
is o aise he p ice o p oduc ion ela i e o i s alue. The Sec o 1 uses a highe p opo ion o
i s own p oduc s ha is almos ce ainly ue i one conside s ha he wo sec o s a e p oduced
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The ec o o con ol a iables is deno ed as CX. As p e iously discussed, he ecologically
unequal exchange is also a ec ed by o he ac o s. D awing on exis ing li e a u e (Jo genson,
2009;Li and Qi, 2011;Jing and Zhang, 2014), we p ima ily con ol o he ollowing ac o s:
(1) The loga i hm o g oss domes ic p oduc (GDP) pe capi a (ln gdp) and i s squa e e m
(ln gdp
2
)
Acco ding o he logic o he EKC, he le el o economic de elopmen can a ec he eco-
e iciency o an economy’s p oduc ion h ough i s echnical e iciency and indus ial s uc u e,
and hus i s deg ee o ecologically unequal exchange. This e ec may be in an in e ed
U-shape.
(2) The deg ee o economic openness (open)
We measu e he deg ee o economic openness by he a io o o al impo s and expo s o GDP.
Ecologically unequal exchange is a p ocess ha elies on he global ma ke . Economies deeply
in eg a ed in o he global ma ke and ela i ely closed ones should exhibi di e en deg ees o
ecologically unequal exchange unde simila condi ions.
(3) The a e o u baniza ion (u ban)
We measu e he deg ee o u baniza ion by he p opo ion o he u ban popula ion o he o al
popula ion. U ban and u al a eas exe di e en p essu es and ha e di e en demands on he
en i onmen . Fu he mo e, he p ocess o u baniza ion can al e he indus ial s uc u e o an
economy. All o hem may a ec he inpu and consump ion ega ding he en i onmen al cos s
o he economy.
(4) Labo quali y (educa ion)
We measu e he a e age quali y o he labo o ce using high school en ollmen a es. Labo
quali y can po en ially impac an economy’s echnical e iciency, indus ial s uc u e,
implemen a ion o en i onmen al p o ec ion policies and he o ma ion o ecological
awa eness, he eby in luencing he economy’s en i onmen al cos inpu and consump ion.
(5) The loga i hmic alues o a e age empe a u e (ln emp) and a e age p ecipi a ion
(ln p ecip)
The na u al condi ions ep esen ed by he clima ic ac o s o an economy can impac he
echnical and ecological e iciency o i s p oduc ion p ocesses and i s consump ion beha io s,
he eby a ec ing he amoun o en i onmen al cos i uses. The e o e, we con ol o clima e
ac o s by using he loga i hmic alues o a e age empe a u e and a e age p ecipi a ion as
con ol a iables.
The da a o he con ol a iables men ioned abo e, i.e. GDP pe capi a, he a io o o al
impo s and expo s o GDP, he p opo ion o he u ban popula ion o he o al popula ion and
he high school en ollmen a e, a e sou ced om he Wo ld Bank. The da a o a e age
empe a u e and p ecipi a ion a e sou ced om Wea he .o g.
The ixed e ec s o egion and ime a e deno ed by δσand δ , espec i ely, con olling o
he unobse able ac o s ega ding egion and ime.
4.2 A p elimina y desc ip ion o alue ans e and ecologically unequal exchange
A e iden i ying he main explana o y a iables, dependen a iables and con ol a iables,
ou p ima y objec i e is o de e mine whe he he main explana o y a iables and he
dependen a iables align wi h heo e ical expec a ions, i.e. de eloped economies ac as alue
ecipien s while de eloping economies se e as alue ans e o s; u he mo e, de eloped
economies bene i om ecologically unequal exchange and de eloping economies a e
disad an aged by i .
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Figu es 1 and 2 exhibi he deg ee o alue ans e o economies calcula ed unde wo
di e en measu es, espec i ely, and anked he economies om highes o lowes . Figu e 1 is
based on he assump ion o comple e non-subs i u abili y be ween sec o s, while Figu e 2
assumes comple e subs i u abili y be ween sec o s. These igu es show ha ega dless o he
measu e used o calcula e alue ans e , de eloping economies in Asia, La in Ame ica and
Eas e n Eu ope exhibi a highe a io o he o al alue o o al ma ke p ice, which exceeds 1,
iden i ying hem as ne alue- ans e ing egions, while mos de eloped egions display
ela i ely low a ios less han 1, ca ego izing hem as ne alue- ecei ing egions. O e all, he
Figu e 1. Value T ans e a io: b oad measu e (1995–2009 a e age)
Figu e 2. Value T ans e a io: na ow measu e (1995–2009 a e age)
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anking o economies does no signi ican ly di e be ween he wo calcula ion me hods, wi h
only a ew economies changing posi ions. Howe e , he e is a subs an ial dispa i y in he
nume ical alues o he deg ee o alue ans e calcula ed unde he wo measu es, as
expec ed.
Figu es 3 and 4 illus a e he deg ee o ecologically unequal exchange in e ms o ca bon
dioxide emissions and wa e esou ces o 40 economies om 1995 o 2009, anked by
magni ude, espec i ely. I can be obse ed ha , i s ly, mos de eloping economies in Asia
and Eas e n Eu ope emain on he disad an aged side o ecologically unequal exchange, while
he mos de eloped capi alis economies occupy an ad an aged posi ion. This pa e n is
analogous o he si ua ion o alue ans e .
Secondly, compa ed wi h he alue ans e , he ela ion be ween he ankings o he deg ee
o ecologically unequal exchange and he posi ions o global no he n and sou he n economies
is no s ic ly co ela ed. Al hough ela i ely less de eloped economies p edominan ly ace
disad an ages in ecologically unequal exchange, many de eloped economies a e also
ad e sely a ec ed, while many de eloping economies bene i om such exchanges. As
p e iously discussed, ecologically unequal exchange is in luenced by nume ous ac o s,
pa icula ly indus ial s uc u e. We no e ha mos de eloping economies disad an aged by
Figu e 3. Deg ee o ecologically unequal exchange ega ding CO
2
(1995–2009 a e age)
Figu e 4. Deg ee o ecologically unequal exchange ega ding wa e esou ces (1995–2009 a e age)
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ecologically unequal exchange a e unde going apid indus ializa ion, while many o hose
bene i ing ha e ela i ely low le els o indus ializa ion. Consequen ly, he en i onmen al
p essu es exe ed by he p oduc ion sys ems o hese wo ypes o economies di e
signi ican ly. Simila dynamics a e obse ed wi h o he ac o s. The e o e, es ablishing he
ela ionship be ween alue ans e and unequal exchange equi es he use o adequa e con ol
a iables.
5. Empi ical analysis
5.1 Baseline eg ession: ecologically unequal exchange o CO
2
emissions
Table 1 p esen s he eg ession esul s wi h he deg ee o ecologically unequal exchange in
e ms o CO2 emissions as he dependen a iable. Columns (1) o (3) use he b oad measu e o
he deg ee o alue ans e ( 1) as he main explana o y a iable, while columns (4) o (6)
employ he na ow measu e o he deg ee o alue ans e ( 2).
In e ms o me hod selec ion, we adop he model h ough o dina y leas squa es (OLS)
es ima ion as he baseline e e ence model and co ec he s anda d e o s o he OLS
coe icien s based on he e oskedas ici y- obus s anda d e o s. We employ a egional ixed-
e ec s model (FE1) o con ol o ixed e ec s be ween egions and use a wo-way ixed-
e ec s model (FE2) o u he con ol o bo h egional and empo al ixed e ec s, o ming a
se o eg ession models om simple o complex o ensu e he eliabili y o he eg ession
me hods and esul s. We conduc h ee eg essions o each o he wo main explana o y
a iables: pooled OLS, he FE1 and he FE2. Due o signi ican mul icollinea i y issues
be ween he deg ee o alue ans e unde he na ow measu e and bo h he loga i hm o GDP
pe capi a and i s squa ed e m, i is in easible o add ess hese unde OLS condi ions.
Table 1. Reg ession o ecologically unequal exchange o CO
2
emissions
(1) (2) (3) (4) (5) (6)
Va iables OLS FE1 FE2 OLS FE1 FE2
1 0.024*** 0.018*** 0.021***
(0.006) (0.004) (0.004)
2 0.103*** 0.128*** 0.143***
(0.019) (0.023) (0.023)
ln gdp 0.224** 0.360*** 0.504*** 0.145*** 0.225***
(0.107) (0.096) (0.107) (0.056) (0.062)
ln gdp
2
�0.012** �0.020*** �0.029*** �0.008*** �0.014***
(0.005) (0.005) (0.006) (0.003) (0.004)
open 0.023*** 0.039*** 0.037*** 0.021*** 0.041*** 0.039***
(0.006) (0.013) (0.013) (0.006) (0.013) (0.013)
u ban 0.076*** 0.404*** 0.244*** 0.005 0.367*** 0.224***
(0.027) (0.060) (0.078) (0.029) (0.057) (0.076)
educa ion 0.000 0.012 �0.011 0.000 0.032* 0.014
(0.0002) (0.019) (0.020) (0.0002) (0.017) (0.018)
ln emp �0.077*** �0.051*** �0.016 �0.071*** �0.083*** �0.092***
(0.007) (0.012) (0.016) (0.007) (0.005) (0.006)
ln p ecip 0.070*** 0.074* �0.081 0.082*** 0.245*** 0.314***
(0.010) (0.042) (0.066) (0.012) (0.030) (0.038)
Cons an e m �0.840 �1.684*** �1.134 0.061 �1.903*** �2.497***
(0.568) (0.610) (0.700) (0.104) (0.364) (0.391)
Sample size 524 524 524 524 524 524
R
2
0.335 0.916 0.919 0.270 0.919 0.922
No e(s): Values in pa en heses ep esen s anda d e o s. The symbols *, **, *** deno e signi icance le els o
10%, 5%, and 1%, espec i ely
Sou ce(s): Au ho s’ own wo k
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Consequen ly, we ha e emo ed he loga i hm o GDP pe capi a and i s squa ed e m om he
se o explana o y a iables in column (4). F om Table 1, we can d aw he ollowing
conclusions:
Fi s , using bo h na ow and b oad measu es o alue ans e , he eg ession coe icien s
a e signi ican ly posi i e a he 1% le el ac oss h ee eg ession me hods: OLS, egional ixed
e ec s and wo-way ixed e ec s, which subs an ia es ou p ima y hypo hesis: ecologically
unequal exchange occu s when alue ans e akes place, indica ing a s ong connec ion in
eali y be ween he wo phenomena.
Second, he coe icien es ima o s o ln gdp a e consis en ly posi i e ac oss all eg essions,
and he coe icien es ima o s o ln gdp [2] a e signi ican ly nega i e, sugges ing he p esence
o an in e ed U-shaped ela ionship be ween ecologically unequal exchange and pe capi a
GDP. This inding emains alid e en a e con olling o alue ans e , indica ing ha he
EKC also has explana o y powe o ecologically unequal exchange. Hence, he heo y o
en i onmen al unequal exchange is no me ely a subs i u e o he EKC, con a y o he belie
o many eco-Ma xis s. An economy’s ecological p essu e is ela ed bo h o he alue ans e
wi hin he capi alis wo ld sys em and o he economy’s s age o de elopmen .
Thi d, o he con ol a iables a e gene ally signi ican ac oss di e en eg essions, align
wi h heo e ical expec a ions and exhibi ela i e s abili y. The deg ee o openness o
in e na ional ma ke s is posi i ely co ela ed wi h ecologically unequal exchange, indica ing
ha he deepe an economy engages wi h he global ma ke , he g ea e i s exposu e o
ecologically unequal exchanges. This conclusion is e iden gi en ha ecologically unequal
exchange inhe en ly elies on he in e na ional di ision o labo and ade. The highe he a e o
u baniza ion, he highe he deg ee o ecologically unequal exchange may be. Because
u baniza ion is in insically linked o indus ializa ion, he expansion o human al e a ion o
na u al en i onmen s and in as uc u e no only enhances he en i onmen al p essu e exe ed
by p oduc ion sys ems bu also inc eases he p opo ion o in e media e goods ela i e o inal
goods, consequen ly inc easing he en i onmen al cos s spen on in e media e goods and u he
he a io o en i onmen al cos inpu s o inal en i onmen al cos consump ion. The coe icien s
on he loga i hm o he a e age annual empe a u e o e he yea s a e all nega i e and, in mos
cases, signi ican , indica ing ha wa me economies ha e lowe deg ees o ecologically unequal
exchange. Meanwhile, he coe icien es ima o s o he loga i hm o he a e age annual
p ecipi a ion sugges ha egions wi h less ain all end o ha e lowe deg ees o ecologically
unequal exchange. The only di e ence om he heo e ical expec a ions is ha labo quali y
does no signi ican ly impac he ecologically unequal exchange, and highe educa ional
a ainmen does no necessa ily esul in lowe deg ees o ecologically unequal exchange.
5.2 Robus ness check: ecologically unequal exchange o wa e esou ces
Acco ding o he heo y p esen ed in he second sec ion, he ela ionship be ween ecologically
unequal exchange and alue ans e does no depend on he ype o en i onmen al cos inpu
in ol ed. The e o e, ou conclusion ega ding he ela ionship be ween CO
2
emissions-based
ecologically unequal exchange and alue ans e should hold ue when o he en i onmen al
a iables a e conside ed. To es his, we eplaced he dependen a iable — ecologically
unequal exchange ega ding CO
2
emissions — wi h ecologically unequal exchange ega ding
wa e esou ces (see eg ession esul s in Table 2). I he esul s emain consis en , his would
indica e ha ou empi ical indings a e obus and eliable.
Table 2 demons a es ha , excep o he coe icien on alue ans e in he pooled OLS
model o alue ans e unde he b oad measu e, which is no s a is ically signi ican , he
coe icien s o alue ans e in he o he i e eg essions a e signi ican ly posi i e a he 1%
le el. This indica es ha he posi i e ela ionship be ween alue ans e and ecologically
unequal exchange pe sis s e en when ca bon dioxide emissions a e eplaced wi h wa e
esou ce inpu s. This inding u he co obo a es he ela ionship be ween ecologically
unequal exchange and alue ans e .
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The insigni icance o he coe icien on alue ans e in he pooled OLS model unde he
b oad measu e may be a ibu ed o wo ac o s: s ong mul icollinea i y be ween alue
ans e and he loga i hm o GDP pe capi a (wi h a a iance in la ion ac o exceeding 100)
and he omi ed- a iable bias due o he absence o con olling o ixed e ec s. By compa ing
he eg ession ou comes, we obse e ha he eg ession esul s om he wo ixed e ec s a e
qui e simila , while he esul s om OLS mos ly di e om hose o he ixed e ec s,
indica ing ha he OLS model migh su e om subs an ial omi ed a iable bias. The e o e,
we p ima ily ocus on he eg ession esul s om bo h ypes o ixed e ec s. The
insigni icance o he OLS coe icien unde he b oad measu e does no a ec he o e all
es ima ion esul s.
The coe icien s on he loga i hm o GDP pe capi a and i s squa e e m a e bo h signi ican
unde he wo ixed-e ec s models and main ain he same signs as hose in he main eg ession
esul s. The posi i e coe icien on he loga i hm o GDP pe capi a and he nega i e
coe icien on he squa ed e m indica e ha he ecologically unequal exchange o wa e
esou ces also has an in e ed U-shaped ela ionship wi h GDP pe capi a. The deg ee o
openness o in e na ional ma ke s and he u baniza ion a e a e signi ican in esul s o he han
he OLS eg ession and main ain he same signs as hose in he main eg ession esul s. The
amoun o p ecipi a ion is consis en wi h he main eg ession esul s in he FE1.
Unlike he main eg ession esul s, he coe icien on labo quali y is signi ican ly nega i e,
sugges ing ha imp o ing labo quali y can conside ably educe he deg ee o ecologically
unequal exchange o wa e esou ces. This may be ela ed o he ac ha he p ima y
consump ion o wa e esou ces comes om ag icul u e, and since ag icul u e in he majo
de eloping economies among he sample is ope a ed by indi idual ag icul u al labo e s,
imp o ing he quali y o hese labo e s can mo e di ec ly imp o e he e iciency o wa e use in
Table 2. Reg ession o ecologically unequal exchange o wa e esou ces
(1) (2) (3) (4) (5) (6)
Va iables OLS FE1 FE2 OLS FE1 FE2
1 0.021 0.121*** 0.122***
(0.043) (0.040) (0.041)
2 0.465** 0.616*** 0.711***
(0.183) (0.206) (0.213)
ln gdp 0.767 5.592*** 4.986*** 0.544** 3.846*** 3.217***
(0.836) (0.991) (1.087) (0.256) (0.626) (0.689)
ln gdp
2
�0.046 �0.281*** �0.237*** �0.030** �0.190*** �0.140***
(0.042) (0.051) (0.058) (0.013) (0.034) (0.040
open �0.121** 0.228** 0.267*** �0.100* 0.236** 0.276***
(0.053) (0.093) (0.096) (0.053) (0.093) (0.096)
u ban �0.402* 1.429** 1.981** �0.339* 1.221* 1.909**
(0.208) (0.659) (0.814) (0.197) (0.660) (0.813)
educa ion 0.308** �0.578*** �0.584*** 0.323** �0.467*** �0.446**
(0.135) (0.167) (0.182) (0.136) (0.167) (0.179)
ln emp �0.503*** 0.857*** 0.216 �0.504*** 0.881*** 0.0786
(0.046) (0.324) (0.491) (0.044) (0.323) (0.491)
ln p ecip 0.060 2.497*** 0.607 0.111** 3.078*** 0.804
(0.056) (0.772) (1.297) (0.056) (0.768) (1.298)
Cons an e m 0.100 �45.010*** �29.550** �0.124 �41.230*** �23.310**
(4.405) (7.592) (11.820) (1.576) (7.164) (11.030)
Sample size 524 524 524 524 524 524
R
2
0.260 0.843 0.848 0.268 0.843 0.849
No e(s): Values in pa en heses ep esen s anda d e o s. The symbols *, **, *** deno e signi icance le els o
10%, 5% and 1%, espec i ely
Sou ce(s): Au ho s’ own wo k
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ag icul u e, educe he cos o wa e pe uni o p oduc , and hus educe he deg ee o
ecologically unequal exchange. Ano he di e ence om he main eg ession esul s is he
coe icien on he loga i hm o empe a u e, o which es ima o s indica e ha highe
empe a u es a e associa ed wi h highe deg ees o ecologically unequal exchange. This is
in ui i e, as egions wi h highe empe a u es gene ally expe ience highe e apo a ion le els,
which can lead o an inc ease in o e all wa e usage. Howe e , once ime- ixed e ec s a e
con olled o , he coe icien is no longe s a is ically signi ican , al hough he di ec ion o he
coe icien emains unchanged. The e o e, i is di icul o d aw de ini i e conclusions
ega ding he impac o di e en clima es on he ecologically unequal exchange in e ms o
wa e esou ces based on he cu en esul s.
6. Conclusion
This pape employs he concep o ecologically unequal exchange o explain he g owing
ecological dispa i ies be ween de eloping and de eloped coun ies. I also connec s
ecologically unequal exchange wi h adi ional heo ies o unequal exchange and alue
ans e . By cons uc ing a wo-sec o , wo-economy Okishio-Mo ishima model, we
demons a e ha he high o ganic composi ion o capi al and high eal wages in de eloped
economies can lead o in e na ional alue ans e unde ai ly elaxed condi ions and simila ly
lead o ecologically unequal exchange unde analogous condi ions. Subsequen ly, we used
WIOD da a o calcula e he deg ees o alue ans e and ecologically unequal exchange o 40
economies om 1995 o 2009 and e i ied hei ela ionship using eg ession analysis.
The exis ence o ecologically unequal exchange indica es ha he inc easing consump ion
o esou ces and en i onmen in de eloping coun ies is no solely a consequence o hei
ac o s, such as he deg ee o egula ion, de elopmen al s ages o echnological le els, as he
de eloped economies also play a signi ican ole in his p ocess. When de eloped economies
impo p oduc s om de eloping economies a e y low p ices, hey exchange lowe
en i onmen al cos s o highe en i onmen al cos inpu s o de eloping economies. I can be
said ha h ough ecologically unequal exchange, de eloped economies ans e hei egional
en i onmen al cos s o de eloping economies. Consequen ly, de eloped economies should be
held accoun able o he high g eenhouse gas emissions, high ene gy consump ion and high
pollu ion p e alen in many de eloping economies oday.
The ela ionship be ween ecologically unequal exchange and alue ans e indica es ha
he mechanism o ans e ing en i onmen al cos s is deeply oo ed in he p oduc ion s uc u e
o he capi alis wo ld sys em. As long as de eloped coun ies ha e a highe o ganic
composi ion o capi al and wages, alue ans e and ecologically unequal exchange can occu
on he global ma ke , e en in pe ec compe i ion. The highe o ganic composi ion o capi al
and high wages a e also he esul s o he accumula ion p ocess in he capi alis wo ld sys em,
pa icula ly wi h he end owa ds highe capi al in ensi ies being sel - ein o cing, which
implies ha alue ans e and ecologically unequal exchange a e also sel - ein o cing. As
long as he p oduc ion s uc u e o he capi alis wo ld sys em emains unchanged, de eloping
economies will ind i challenging o b eak ee om he pa e n o bea ing he en i onmen al
bu den o he p oduc ion o goods consumed by o he coun ies, and hence, i will be di icul
o hem o imp o e hei ecological en i onmen undamen ally.
This is pa icula ly e iden in China. As demons a ed by he da a p esen ed in Sec ion 4,
China exhibi s a signi ican ly highe le el o ecologically unequal exchange compa ed o o he
economies in he sample. This phenomenon is closely in e wined wi h China’s eliance on
inexpensi e labo and en i onmen al deg ada ion o expo ing cheap goods wi hin he cu en
global p oduc ion sys em. Consequen ly, while he olume o expo s has su ged,
en i onmen al challenges ha e simul aneously in ensi ied. These en i onmen al issues a e
no solely a domes ic conce n o China bu a e inhe en ly linked o he global economic
p oduc ion s uc u e and cycle. The e o e, add essing hese en i onmen al conce ns
necessi a es ha China bo h ad ances i s economy owa ds a mo e ad anced s age o
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de elopmen wi h an op imized di ision o labo and a a ional economic s uc u e, as well as
ac i ely engages in global go e nance o e o m he inequi able adi ional in e na ional
economic o de , he eby g adually esol ing i s en i onmen al p oblems.
No es
1. The o he oo o he ela i e p ice, p¼ ½ðc11 −c22Þ− i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q�=2c21 is omi ed
because i has no economic signi icance as i is nega i e due o i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
4c12c21 þðc11 −c22Þ2
q>c11 −c22.
2. In his con ex , he same coe icien is agg ega ed on a global scale, ollowing he gene al logic o
inpu –ou pu able agg ega ion (Feng, 2016b).
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