We examine the impact of environmental provisions in regional trade agreements (RTAs) on the environmentally harmful exports. Results show that environmental clauses in RTAs help reduce “dirty” exports, whereas RTA depth promotes exports. The exporting country may divert its polluting exports to its trading partner if it faces more environmental provisions with other countries.
Cao, L., Fu, D., & Zhang, Y. (2023). Are greener RTAs reducing “dirty” exports?. Economic Analysis Letters, 2(4), 36. https://doi.org/10.58567/eal02040002
Article Metrics
Article Access Statistics
References
Baghdadi, L., Martinez-Zarzoso, I., Zitouna, H., 2013. Are RTA Agreements with environmental provisions reducing emissions? Journal of International Economics. 90, 378–390. https://doi.org/10.1016/j.jinteco.2013.04.001
Baier, S. L., Bergstrand, J. H., 2007. Do free trade agreements actually increase members’ international trade? Journal of International Economics. 71 (1), 72–95. https://doi.org/10.1016/j.jinteco.2006.02.005
Bastiaens, I., Postnikov, E., 2017. Greening up: The effects of environmental standards in EU and US trade agreements. Environmental Politics. 26, 1–23. https://doi.org/10.1080/09644016.2017.1338213
Berger, A., Brandi, C., Morin, J.-F., Schwab, J., 2020. The trade effects of environmental provisions in preferential trade agreements. International Trade, Investment, and the Sustainable Development Goals: World Trade Forum. Cambridge: Cambridge University Press. https://doi.org/10.1017/9781108881364
Cheng, I.-Hui, Wall, Howard J., 2005. Controlling for heterogeneity in gravity models of trade and integration. Review, Federal Reserve Bank of St. Louis (Jan), 49–63. https://doi.org/10.20955/r.87.49-64
Dai, M., Yotov, Y. V., Zylkin, T., 2014. On the trade-diversion effects of free trade agreements. Economics Letters. 122, 321-325. https://doi.org/10.1016/j.econlet.2013.12.024
Dhingra, S., Freeman, R., Huang. H, 2021. The impact of deep trade agreements on trade and welfare. LSE Centre for Economics Discussion Paper 1742. https://cep.lse.ac.uk/pubs/download/dp1742.pdf
Low, P., Yeats, A., 1992. Do ‘‘dirty” industries migrate? in (Patrick Low, ed.): International Trade and the Environment, World Bank Discussion Papers, 159, The World Bank, Washington.
Mattoo, A., Mulabdic, A., Ruta, M., 2017. Trade creation and trade diversion in deep agreements. World Bank Policy Research Working Paper No. 8206. http://hdl.handle.net/10986/28451
Mattoo, A., Rocha, N., Ruta, M., 2020. Handbook of deep trade agreements. Washington, DC: World Bank. http://hdl.handle.net/10986/34055
Santos Silva, J.M.C., Tenreyro, S., 2006. The log of gravity. Review of Economics and Statistics. 88, 641–658. https://doi.org/10.1162/rest.88.4.641