Growing Potential Business opportunity for Climate Friendly Goods and Technologies in Asia since 1997

This paper examines empirical relationships, analyses determinants of CFGT trade in the pre-crisis period and predict bilateral trade flows using the gravity model in Asia. Income level, geographical distance, and developmental position of both trading partners, and country characteristics, economic policy reforms and available infrastructure are important determinants of CFGT trade and its sub-categories. Through trade gap, this paper estimates the value of trade opportunity of CFGT in Asia, identifies potential trading partners, and also suggests CFGT trade among the trade partners.