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Trade and Environment: Bargaining Outcomes from Linked Negotiations

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  • Abrego, Lisandro, et al
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    Abstract

    Some recent literature has explored physical and policy linkages between trade and the environment. This paper explores linkage through leverage in bargaining, whereby developed countries can use trade threats to achieve improved developing-country environmental management, while developing countries can use environmental concessions to achieve trade discipline in developed countries. A global numerical simulation model is used to compute bargaining outcomes from linked trade and environment negotiations. Results indicate joint gains from expanding the trade bargaining set to include the environment. However, compared with bargaining with cash side-payments, linked negotiations on policy instruments provide significantly inferior outcomes for developing countries. Copyright 2001 by Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Review of International Economics.

    Volume (Year): 9 (2001)
    Issue (Month): 3 (August)
    Pages: 414-28

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    Handle: RePEc:bla:reviec:v:9:y:2001:i:3:p:414-28

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    Cited by:
    1. Markusen, James R., 2012. "Per-Capita Income as a Determinant of International Trade and Environmental Policies," Discussion Papers 2013-06, Graduate School of Economics, Hitotsubashi University.
    2. Tai-Liang Chen & Leonard Wang, 2010. "Trade liberalization and transboundary pollution in an international mixed duopoly," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 12(4), pages 187-200, December.
    3. John WHALLEY, 2011. "What Role for Trade in a Post 2012 Global Climate Policy Regime," Working Papers P22, FERDI.
    4. Myriam Anna Scaringelli, 2011. "Commercio Internazionale E Ambiente: Un’Analisi A Livello Provinciale," Quaderni DSEMS 06-2011, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    5. Paola Conconi & Carlo Perroni, 2001. "Issue Linkage and Issue Tie-in in Multilateral Negotiations," CESifo Working Paper Series 601, CESifo Group Munich.
    6. Ederington, Josh & McCalman, Phillip, 2003. "Discriminatory tariffs and international negotiations," Journal of International Economics, Elsevier, vol. 61(2), pages 397-424, December.
    7. Limao, Nuno, 2005. "Trade policy, cross-border externalities and lobbies: do linked agreements enforce more cooperative outcomes?," Journal of International Economics, Elsevier, vol. 67(1), pages 175-199, September.
    8. Horn, Henrik & Mavroides, Petros C., 2013. "Multilateral Environmental Agreements in the WTO: Silence Speaks Volumes," Working Paper Series 983, Research Institute of Industrial Economics.
    9. Lai, Yu-Bong & Hu, Chia-Hsien, 2008. "Trade agreements, domestic environmental regulation, and transboundary pollution," Resource and Energy Economics, Elsevier, vol. 30(2), pages 209-228, May.
    10. John WHALLEY, 2011. "What Role for Trade in a Post 2012 Global Climate Policy Regime," Working Papers P22, FERDI.
    11. Li, Chunding & Whalley, John, 2014. "China's potential future growth and gains from trade policy bargaining: Some numerical simulation results," Economic Modelling, Elsevier, vol. 37(C), pages 65-78.
    12. James R. Markusen, 2014. "Per-Capital Income as a Determinant of International Trade and Environment Policies," CESifo Working Paper Series 4618, CESifo Group Munich.

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