MARKETING OF ENVIRONMENTAL GOODS: POTENTIAL AND CONSTRAINTS TO EXPORT GROWTH OF ENVIRONMENTAL GOODS IN INDIA

摘要

The increasing awareness of climate change and its impact on overall economic growth has encouraged many countries to pursue production, marketing, and consumption of environment friendly goods and services (EGS). An important question in this contextis whether India, which has been becoming a major exporter as well as a promising market for environmental goods (EG), is able to make use of this new opportunity provided by the growing market for environmental goods (EG). Using data between 2005 and 2010, this paper identifies the constraints that make India not able to realize its export potential of EG with its major trading partners. The empirical results show that the growth of India's exports of EG was negatively affected by its 'behind the border' constraints, such as weak infrastructure and institution, while the effect of 'explicit beyond the border' constraints, such as tariff and exchange rate on the exports of EG was relatively small. The reduction of India's trading partners' 'implicit beyond the border' constraints, such as weak infrastructure and institutions has made significant contribution to India's exports of EG, especially during the period 2005 - 2010.