Is Environmental Policy a Secondary Trade Barrier? An Empirical Analysis

20 Pages Posted: 15 Aug 2001

See all articles by Josh Ederington

Josh Ederington

University of Kentucky - Department of Economics

Jenny Minier

University of Kentucky - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2001

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 flows. In contrast, we find that, when the level of environmental regulation is modeled as an endogenous variable, its estimated effect on trade flows is significantly higher than previously reported.

JEL Classification: F13

Suggested Citation

Ederington, Josh and Minier, Jenny, Is Environmental Policy a Secondary Trade Barrier? An Empirical Analysis (May 2001). Available at SSRN: https://ssrn.com/abstract=198408 or http://dx.doi.org/10.2139/ssrn.198408

Josh Ederington (Contact Author)

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

Jenny Minier

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

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