The most important justification for liberalizing trade in EGs is the improvement in developing- country environmental performance. For three categories of EGs, the correlation between the relevant environmental performance index (EPI) and trade is significant, at the 1 per cent level. These products, which are included in the categories of clean-up or remediation of soil and water, renewable energy, and heat and energy management, account for about 40 tariff lines. This high correlation could therefore be interpreted to imply that goods in these categories probably are being put to some environmental end use. As FDI increases, so too does trade in goods related to air pollution control, management of solid and hazardous waste and recycling systems, clean-up or remediation, renewable energy, natural risk management, and noise and vibration abatement equipment covered by the WTO list. This high correlation can be explained by the fact that most of these products have dual uses.