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Trade Policy, Green Goods and the Labor Market: Evidence from the Philippines
Green goods trade will matter for the transition to a low-carbon global economy as well as for its adaptive capacity to climate events. This study explores green goods trade and related trade policies in the Philippines and its relationship with the labor markets. The paper finds that the country’s green goods trade is limited due to certain costly non-tariff measures affecting energy transition and other types of green goods. Of about 90 measures, five are identified as reform candidates. Reforming these could enhance green goods trade, as there is a positive correlation between imports and exports of green goods. However, increased exports could reduce the number of high-skilled workers, while imports might increase the shares of female workers within industries. Green goods imports also correlate with higher earnings across industries. The study suggests that trade policy reforms may lead to labor shifts, necessitating complementary policies for affected workers when making trade policies more climate-friendly.
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