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Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes

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  • Jevan Cherniwchan
  • Nouri Najjar

Abstract

We test the hypothesis that governments alter environmental policy in response to trade by studying NAFTA's effects on the formation of environmental policy in the US House of Representatives between 1990 and 2000. We find that reductions in US tariffs decreased political support for environmental legislation. This decrease appears to be due to (i) a reduction in support by incumbent Republican legislators in response to trade-induced changes in the policy preferences of their constituents and (ii) changes in partisan representation in affected districts due to decreased electoral support for pro-NAFTA Democrats following the agreement.

Suggested Citation

  • Jevan Cherniwchan & Nouri Najjar, 2025. "Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes," American Economic Journal: Economic Policy, American Economic Association, vol. 17(2), pages 224-258, May.
    • Handle: RePEc:aea:aejpol:v:17:y:2025:i:2:p:224-58
    DOI: 10.1257/pol.20230733
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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