This paper, based on existing researches, taking journal articles on environmental effect of trade as research object to explore the field's research status, hot spots and novel direction by applying co-word clustering analysis and strategic diagram. By taking the relevant literature in CNKI database as the data source, this study aims to form a comprehensive understanding of the environmental effect of trade. The study suggests that carbon emission effect of trade and environmental effect of trade are the most novel research fields. In addition, the research on comparative advantage of environment has aroused much attention although neither its research direction nor research content is mature.