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Does Trade Promote Environmental Coordination?: Pollution in International Rivers

Author

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  • Sigman Hilary

    (Rutgers University)

Abstract

This paper examines whether trade relationships facilitate resolution of international environmental spillovers. Trade might promote cooperation by providing opportunities for implicit side payments, allowing linkage between environmental and trade concessions, providing direct leverage over other countries' production, or instilling a perception of shared goals. Using data from the UN's Global Environmental Monitoring System (GEMS) on water quality in international rivers, the paper examines the influence of bilateral trade on pollution in rivers that cross international borders. It reports evidence of lower water pollution in rivers shared between countries with more extensive trade. Improved coordination from expanded trade may thus represent a benefit to weigh against the environmental costs of the pollution havens effect.

Suggested Citation

  • Sigman Hilary, 2003. "Does Trade Promote Environmental Coordination?: Pollution in International Rivers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-26, December.
  • Handle: RePEc:bpj:bejeap:v:contributions.3:y:2004:i:2:n:2
    DOI: 10.2202/1538-0645.1251
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    Cited by:

    1. Neda Zawahri & Oliver Hensengerth, 2012. "Domestic environmental activists and the governance of the Ganges and Mekong Rivers in India and China," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 12(3), pages 269-298, September.
    2. Dinar, Shlomi & Katz, David & De Stefano, Lucia & Blankespoor, Brian, 2014. "Climate change, conflict, and cooperation : global analysis of the resilience of international river treaties to increased water variability," Policy Research Working Paper Series 6916, The World Bank.
    3. Dinar, Ariel & Blankespoor, Brian & Dinar, Shlomi & Kurukulasuriya, Pradeep, 2010. "Does precipitation and runoff variability affect treaty cooperation between states sharing international bilateral rivers?," Ecological Economics, Elsevier, vol. 69(12), pages 2568-2581, October.

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