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'Cleaning Up' while Cleaning Up? Pollution Abatement, Interest Groups and Contingent Trade Policies

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  • Leidy, Michael P
  • Hoekman, Bernard M

Abstract

This paper analyzes the political economy of environmental-policy formation in a trading economy with established rules for administered protection. We argue that the social costs associated with the adoption of an inefficient environmental regime are likely to be compounded by induced restrictions on trade when the effected industries are import competing. The preferences of interest groups for alternative environmental regimes tend to be linked to the legal-institutional setting in which trade policy is conducted. Under existing rules and practices in the area of administered protection, there is reason to believe that interest group preferences for an inefficient approach to pollution control will be strengthened because the adoption of such a regime is more likely to lead to a concomitant increase in trade barriers. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Leidy, Michael P & Hoekman, Bernard M, 1994. "'Cleaning Up' while Cleaning Up? Pollution Abatement, Interest Groups and Contingent Trade Policies," Public Choice, Springer, vol. 78(3-4), pages 241-258, March.
    • Handle: RePEc:kap:pubcho:v:78:y:1994:i:3-4:p:241-58
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    Cited by:

    1. Rauscher, Michael, 1995. "Protectionists, environmentalists, and the formation of environmental policy in an open economy," Discussion Papers, Series II 256, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    2. Bommer, Rolf, 1995. "Environmental policy and industrial competitiveness: The pollution haven hypothesis reconsidered," Discussion Papers, Series II 262, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    3. Eliste, Paavo & Fredriksson, Per G., 2002. "Environmental Regulations, Transfers, and Trade: Theory and Evidence," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 234-250, March.
    4. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    5. Hillberry, Russell & Zurita, Carlos, 2020. "A Cross-country Assessment of Commitment Behavior in the Trade Facilitation Agreement," Conference papers 333183, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Xinpeng Xu, 2000. "International Trade and Environmental Regulation: Time Series Evidence and Cross Section Test," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(3), pages 233-257, November.
    7. Per Fredriksson, 2001. "How Pollution Taxes may Increase Pollution and Reduce Net Revenues," Public Choice, Springer, vol. 107(1), pages 65-85, April.
    8. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
    9. Damania, Richard & Fredriksson, Per G., 2003. "Trade policy reform, endogenous lobby group formation, and environmental policy," Journal of Economic Behavior & Organization, Elsevier, vol. 52(1), pages 47-69, September.
    10. Taner Güney, 2015. "Environmental sustainability and pressure groups," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2331-2344, November.
    11. Damania, R., 2001. "When the Weak Win: The Role of Investment in Environmental Lobbying," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 1-22, July.
    12. Bommer, Rolf & Schulze, Günther G., 1994. "Economic integration and environmental policy: Does NAFTA increase pollution?," Discussion Papers, Series II 218, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    13. Barbier, Edward B. & Damania, Richard & Leonard, Daniel, 2005. "Corruption, trade and resource conversion," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 276-299, September.
    14. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics.
    15. Rauscher, Michael, 2001. "International trade, foreign investment, and the environment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
    16. Russell Hillberry & Carlos Zurita, 2022. "Commitment behaviour in the World Trade Organization's Trade Facilitation Agreement," The World Economy, Wiley Blackwell, vol. 45(1), pages 36-75, January.
    17. Per G. Fredriksson, 1999. "The Political Economy of Trade Liberalization and Environmental Policy," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 513-525, January.
    18. Bommer, Rolf & Schulze, Gunther G., 1999. "Environmental improvement with trade liberalization," European Journal of Political Economy, Elsevier, vol. 15(4), pages 639-661, November.
    19. Rauscher, Michael, 1995. "Protectionists, environmentalists, and the formation of environmental policy in an open economy," Kiel Working Papers 685, Kiel Institute for the World Economy (IfW Kiel).
    20. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 204, Economics Division, School of Social Sciences, University of Southampton.

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