Environmental Regulation and Trade Flows

Abstract

Should international trade agreements be extended to include negotiations over environmental policy? The answer depends on whether countries distort levels of environmental regulations as a secondary means of providing protection to domestic industries; our results suggest that they do. Previous studies of this relationship have treated the level of environmental regulation as exogenous, and found a negligible correlation between environmental regulation and trade ows. In contrast, we nd that, when the level of environmental regulation is modeled as an endogenous variable, its estimated e ect on trade ows is signi cantly higher than previously reported. JEL code: F13 (Commerical Policy, Protection, Promotion, Trade Negotiations)

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Cite this paper

@inproceedings{Ederington2000EnvironmentalRA, title={Environmental Regulation and Trade Flows}, author={Josh Ederington and Jenny Minier and Arik Levinson and Chris Magee and Werner Antweiler and Kerry Anne McGeary}, year={2000} }