Do Trade Deals Encourage Environmental Cooperation?

Author
Jean-Frédéric Morin, Vera Chaudhuri, Mathilde Gauquelin
Content Type
Policy Brief
Institution
German Development Institute (DIE)
Abstract
Trade agreements have mixed effects on the environment. On the one hand, trade generates additional pollution by raising production levels. Trade rules can also restrict the capacity of governments to adopt environmental regulations. On the other hand, trade agreements can favour the diffusion of green technologies, make production more efficient and foster environmental cooperation. Whether the overall effect is positive or negative partly depends on the content of the trade agreement itself. Recent studies have found that trade agreements with detailed environmental provisions, in contrast to agreements without such provisions, are associated with reduced levels of CO2 emission and suspended particulate matter (Baghdadi et al., 2013; Zhou, 2017). It remains unclear, however, which specific provisions have a positive environmental impact and how they are actually implemented.
Topic
International Affairs
Political Geography
Global Focus