Articles
DOI DOI: 10.62441/actainnovations.v63i.1133

THE HIDDEN COST OF GLOBAL TRADE: GOVERNMENT ROLES IN MANAGING POLLUTION TRANSFER BETWEEN IMPORTING AND EXPORTING NATIONS: AN ANALYSIS OF ECONOMIC BURDEN DISTRIBUTION AND POLICY INTERVENTIONS

Rasha Fady Ismail 1, Dina Sabry2, Abbas Issa 1, Mazen Khalil 3, Sally Afchal4
  1. 1 American University of Iraq, Baghdad.
  2. 2 American University of the Middle East.
  3. 3 American University of Cairo (AUC).
  4. 4 American University of the Middle East

Abstract

This study aims to reveal the relationship between world consumption of commodities and local environmental and health consequences. To do that, we used 2022 greenhouse gas emissions data from the Global Carbon Project, Andrew & Peters (2024), and 2024 Air Quality Index statistics of these countries to research the truth of the Pollution Haven Hypothesis. Our nested multiple linear regression models demonstrate that while approximately 25% of global CO2 emissions are embodied in international trade, a nation’s domestic ambient air quality is ultimately dictated more by institutional regulatory capacity and macroeconomic development stage rather than its net trade status. Furthermore, we quantify the localized human costs of this structural imbalance, estimating over 208,500 annual premature deaths in major manufacturing hubs like China due to export-embedded production. Based on these empirical dynamics, this paper details an institutional governance framework evaluating consumption-based carbon accounting, Carbon Border Adjustment Mechanism (CBAM) revenue-recycling, and WTO-UNFCCC structural synchronization to align macroeconomic incentives with global environmental justice.

How to Cite

Ismail , R. F., Dina Sabry, Issa , A., Khalil , M., & Afchal, S. (2026). THE HIDDEN COST OF GLOBAL TRADE: GOVERNMENT ROLES IN MANAGING POLLUTION TRANSFER BETWEEN IMPORTING AND EXPORTING NATIONS: AN ANALYSIS OF ECONOMIC BURDEN DISTRIBUTION AND POLICY INTERVENTIONS. ACTA INNOVATIONS, 63, 648–660. https://doi.org/10.62441/actainnovations.v63i.1133
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