Welfare and Trade Effects of International Environmental Agreements

Montagna, Catia; Pinto, Avanti Nisha; Vlassis, Nikolaos

doi:10.1007/s10640-020-00428-x

Cited by 6 publications

(3 citation statements)

References 30 publications

(42 reference statements)

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“…This includes environmental benefits, as well as economic benefits, if some parts of a ratifier's production are relocated to a non-ratifier country. Based on their modeling results, Montagna et al (2020) highlighted a potential side-effect, namely international environmental agreements may lead to a welfare reduction in the non-participating countries.…”

Section: Effect Of Climate Policy Measures On Trade and Economic Welfarementioning

confidence: 99%

Trade–Climate Nexus: A Systematic Review of the Literature

Balogh

Mizik

2021

Economies

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In the climate–trade debate, moderate attention is dedicated to the role of trade agreements on climate. In turn, trade agreements could help countries meet climate goals by removing tariffs, harmonizing standards on environmental goods, and eliminating distorting subsidies on fossil fuels. This paper aims to provide an overview of the role of trade agreements on climate-change mitigation. This systematic literature review is based on the international economic literature published between 2010 and 2020. This literature review underlines that the effectiveness of the trade agreements and WTO negotiations on emission reduction is weak. This is due to different national interests and protectionism. The elimination of trade barriers stimulates trade, but this may also raise greenhouse gas emissions and cause other environmental problems (e.g., deforestation). Furthermore, this article points out that emission leakage is also a crucial issue hindering the success of global climate agreements on greenhouse gas reduction. The greatest beneficiaries of the trade agreements are usually the largest GHG emitters, such as China, the US, and the EU. By contrast, developing countries are in a weaker position regarding climate–trade negotiation. The literature review offers policy solutions which can contribute to emission reduction and tools for stimulating a trade-related climate-change abatement policy.

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Section: Effect Of Climate Policy Measures On Trade and Economic Welfarementioning

confidence: 99%

Trade–Climate Nexus: A Systematic Review of the Literature

Balogh

Mizik

2021

Economies

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“…The research of Montagna, Pinto and Vlassis (2020) on the trade effects of international environmental agreements on the welfare of the countries has shown that introduction of the agreements can reduce the level of welfare in the non-participating countries due to the trade creation and trade diversion effects of the policy. Thus, the terms-of-trade effects of EP are substantial channel affecting the incentives of the countries to join an environmental agreement and can deteriorate the pollution haven effect.…”

Section: The Impact Of Ep On Export Of the Countriesmentioning

confidence: 99%

Measuring the Influence of Environmental Policy on Economic Development of the Countries: EU-28 Scope

Vovk¹,

Varenyk²,

Pestovska³

et al. 2021

ekoncas

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In current paper, we have researched the influence of environmental policy stringency (EPS) on economic development of the EU-28. The problem of identifying the influence of stringency of environmental policy (EP) on economic development of the EU-28 is that currently there is no well-established understanding of what economic results can be achieved depending on the extent of EPS within a separate country. The paper aims at making contribution to theoretical, empirical and political scopes of perception of EP as an independent factor of economic development of the EU-28. The results of research indicate that EPS is significant factor of economic development of the EU countries.

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“…The idea of an IEA providing club goods to its parties is usually treated as a policy proposal that still lacks an empirical manifestation. As a consequence, the literature on environmental club is mainly based on theoretical inquiries, survey experiments, numerical simulations, and agent-based models (e.g., Cirone & Urpelainen, 2013;Eichner & Pethig, 2015;Gampfer, 2016;Hagen & Schneider, 2017;Hovi et al, 2019;Kemfert, 2004;Lessmann et al, 2009;Montagna et al, 2019;Saelen, 2016;Sprinz et al, 2018). 3 1 3…”

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confidence: 99%

Environmental agreements as clubs: Evidence from a new dataset of trade provisions

2023

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Creating intergovernmental environmental clubs is a prominent policy proposal for addressing global environmental problems. According to their proponents, environmental clubs provide an incentive to join them and accept their environmental obligations by generating exclusive “club goods” for their members. Yet, the existing literature considers environmental clubs as a theoretical idea that still has to be put into practice. This article asks whether, in fact, the numerous international environmental agreements (IEAs) containing trade-related provisions provide club goods to their parties. It does so by investigating the effects of these provisions on trade flows among parties compared to flows with non-parties. We introduce an original dataset on 48 types of trade provisions in 2,097 IEAs that we make available with the publication of this article. Based on this new data and a panel of worldwide bilateral trade flows, we find evidence that existing IEAs and their trade-liberalizing content are associated with increased trade among their parties relative to trade with non-parties. We conclude from this finding that systems of IEAs provide club goods to their parties. Uncovering the existence of environmental clubs has significant methodological and policy implications. It is an important first step for future research on the actual effectiveness of clubs in attracting participation and raising environmental standards.

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Welfare and Trade Effects of International Environmental Agreements

Cited by 6 publications

References 30 publications

Trade–Climate Nexus: A Systematic Review of the Literature

Trade–Climate Nexus: A Systematic Review of the Literature

Measuring the Influence of Environmental Policy on Economic Development of the Countries: EU-28 Scope

Environmental agreements as clubs: Evidence from a new dataset of trade provisions

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