GREEN TRADE OPENNESS INDEX (GOP)
What is Green Trade Openness Index?
Green Openness Index is an index that shows how an economy is open to trading of green products.
The calculation methodology of GOP
In order to calculate GOP, it is necessary to distinguish the green goods from the total international trade basket. After, GOP is calculated as follows:
GRNX indicates the present value of total environment related products (green goods) export by reporter country to the world i at time t. GRNM stands for the present value of total environment related products (green goods) import to the reporter country i (from the world) at time t. GDP represents the total value of manufactured goods in country i in current year t.
Which Green Product List is considered during calculation of GOP?
There is no agreement on a standard green/environment-friendly product basket in the literature. Different organizations classify different products as green goods (environment-friendly goods). These are Plurilateral agreement on environmental goods and services’ list (PEGS) released by the OECD, The Friends' List’ presented by the World Trade Organization, and Asia-Pacific Economic Cooperation (APEC) green product list. Additionally, there is one more green products list called the OECD Combined List of Environmental Goods (CLEG) covering all above mentioned green product baskets. This is the largest green product basket consists of 255 goods in total. Besides, OECD prepare “a core green product list” that is called CLEG+ contains 40 products.
GOP is prepared based on different green product list. There are avaliable GOP indicies based on CLEG, APEC and CLEG+. Besides, we provide a sub-GOP index based on OECD’s CLEG list "cleaner and more resource efficient technologies and products" (CRE) and consists of 47 products. CLEG green product basket consists of 11 main categories. This index (CLEG CRE) only represents one of them. All in all, there are avaliable 3 overall green indicies and 1 sub-GOP index in our data set.
How many countries does the GOP include?
The GOP indices are calculated for all OECD countries and Non-OECD Countries. There is available over 160 countries with their Green Trade Openness Index. You can reach all data for these country groups below. Please read the explanation carefully in the Exel file.