How does global trade in environmental goods contribute to the SDGs in developing countries?

Abstract

AbstractGlobal trade in environmental goods (EGs) has provided a new vision for international cooperation in response to sustainable development goals (SDGs). However, there are ongoing debates over whether developing countries can achieve sustainability during their trade participation. This study proposes a conceptual framework to observe countries' current trade status and potential for benefit from global EG trade. By tracing the changing status of 142 countries in the conceptual framework during 2001–2019, this study finds that global EG trade reduces inequality among developed countries while it increases inequality among developing countries. Some emerging market countries may enhance their status in the global trade network, but their upgrading within the global value chain remains slow. The current poor EG trade state and limited benefit potential of most developing countries will have a non‐significant impact in terms of achieving the SDGs. The study suggests that regional trade will give developing countries a better chance to integrate into trade markets and support them toward achieving the SDGs.