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Market Structure and the Environmental Implications of Trade Liberalization: Russia's Accession to the World Trade Organization

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  • Christoph Böhringer
  • Thomas F. Rutherford
  • David G. Tarr
  • Natalia Turdyeva

Abstract

We investigate the environmental impacts of Russia's World Trade Organization (WTO) accession with a computable general equilibrium model incorporating imperfectly competitive firms, foreign direct investment and endogenous productivity. WTO accession increases CO 2 emissions through technique (−), composition (+) and scale (+) effects. We consider three complementary policies to limit CO 2 emissions: cap and trade, emission intensity standards and energy efficiency standards. With imperfectly competitive firms, gains from WTO accession result with any of these policies. If we assume perfectly competitive market structures, the negative environmental impacts of WTO accession are smaller and no net gains arise when environmental regulation involves energy intensity or efficiency standards.

Suggested Citation

  • Christoph Böhringer & Thomas F. Rutherford & David G. Tarr & Natalia Turdyeva, 2015. "Market Structure and the Environmental Implications of Trade Liberalization: Russia's Accession to the World Trade Organization," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 897-923, November.
  • Handle: RePEc:bla:reviec:v:23:y:2015:i:5:p:897-923
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    File URL: http://hdl.handle.net/10.1111/roie.12197
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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