Will TAFTA Be Good or Bad for the Environment?

The current study empirically investigates and shows that, on average, the possible implementation of the Transatlantic Trade and Investment Partnership (TTIP) would generally help in the fight against global warming. In particular, the study finds that a 1% increase in the bilateral trade between the United States and the typical EU member would reduce annual per capita emissions of CO2 and GHGs in the typical TTIP member by about 2.7% and 2.4%, respectively. However, results also show that TTIP may increase annual per capita emissions of GHGs in the United States by about 2.5% per year. These results stand because the factor endowment hypothesis and the pollution haven hypothesis based on population density variations appear to dominate the pollution haven hypothesis based on national income differences.

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“…Whether FEH dominates or not PHH1 remains an empirical question. For more details see Qirjo and Christopherson (2016).…”

Section: Three Estimating Equationsmentioning

confidence: 99%

The Role of TTIP on the Environment

Qirjo

Pascalau

2019

Southern Economic Journal

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“… See Antweiler et al (2001),Davis and Caldeira (2010),Qirjo and Christopherson (2016),Qirjo and Pascalau (2019b), andQirjo et al (2019), who among others, provide empirical evidence consistent with FEH.4 There is plenty of empirical research that empirically validate the claim the capital-intensive goods are more pollution-intensive goods as compared to the labor-intensive ones (e.g.,Jaffe et al (1995),Cole and Elliott (2003)). 5 Mathematically, we use the following weighting scheme when constructing the three-years lagged moving average of income per capita:I it = .6 * I it−1 + .3 * I it−2 + .1 * I it−3 .6 SeeLevinson and Taylor (2008),Cole and Fredriksson (2009) andQirjo and Pascalau (2019b) who among others, find empirical evidence in support of PHH1.…”

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confidence: 99%

The Role of CETA on Carbon Dioxide, F-Gasses, Methane, and Nitrous Oxide

2020

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This study empirically investigates how the presence of CETA (Comprehensive Economic and Trade Agreement) may affect per capita emissions of four air pollutants. It follows closely the empirical work of (Qirjo et al., 2019), but it focuses in each category of GHGs. It finds statistically significant evidence suggesting that trade openness between the EU and Canada could help reduce per capita emissions of CO 2 , CH 4 , and N 2 O in a typical CETA member, respectively. In the case of CO 2 , the presence of CETA may help reduce per capita emissions in almost all CETA members. However, there is empirical evidence that suggests that per capita emissions of CH 4 could move from the EU towards Canada due to the implementation of CETA. There is also empirical evidence implying that there could be a shift of emissions per capita of N 2 O from Canada towards 8 former EU members due to the implementation of CETA. There is mainly statistically insignificant evidence of a positive relationship between trade intensity of each EU member and Canada and per capita emissions of HFCs/PFCs/SF 6. Furthermore, the study reports unambiguous empirical evidence in support of Pollution Haven Hypothesis originating from national population density variations (PHH2) for Canada, in the case of CH 4. Moreover, there is also clear evidence consistent to the Pollution Haven Hypothesis due to national income differences (PHH1) for 8 former Communist EU members, in the cases of N 2 O and HFCs/PFCs/SF 6 .

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“…an EU member with a lower capital to labor ratio, relative to the US, will see per capita emissions of CH 4 , N 2 O, NH 3 , and SF 6 , fall in response to the implementation of TTIP [see Qirjo and Christopherson (2016) for an empirical analysis of the implementation of TTIP under the factor endowment hypothesis and Pollution Haven Hypothesis One, but in the absence of Pollution Haven Hypothesis Two].…”

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confidence: 99%

Transatlantic Trade and Investment Partnership, and Environmental Consequences

Qirjo

Pascalau

Christopherson

2021

Journal of Economic Integration

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We empirically investigate the effect of the Transatlantic Trade and Investment Partnership on the per capita emissions of eight air pollutants and municipal waste. By introducing the same explanatory variables and applying the same empirical strategy and methodologies as in Qirjo and Pascalau (2019), we provide robust evidence suggesting that the implementation of the partnership could be beneficial to the environment because it may reduce per capita emissions of CH4, hydrofluorocarbons/ perfluorinated chemicals/ SF6, N2O, NH3, and SF6 for a typical partnership member. This result is based on statistically significant evidence showing that, on average, the pollution haven motive based on national per capita income variations is dominated by the factor endowment argument based on the Heckscher-Ohlin trade theory and the pollution haven motive originating from an inverse measurement of national population density differences. However, we also report statistically significant evidence that the implementation of the partnership could denigrate the environment by increasing per capita emissions of SO2 and municipal waste.

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Will TAFTA Be Good or Bad for the Environment?

Cited by 7 publications

References 12 publications

The Role of TTIP on the Environment

The Role of TTIP on the Environment

The Role of CETA on Carbon Dioxide, F-Gasses, Methane, and Nitrous Oxide

Transatlantic Trade and Investment Partnership, and Environmental Consequences

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