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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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    1. Sendhil Mullainathan & Andrei Shleifer, 2002. "Media Bias," NBER Working Papers 9295, National Bureau of Economic Research, Inc.
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    Cited by:

    1. 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, pages 490-512.
    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. 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.
    4. 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".
    5. Rauscher, Michael, 2001. "International trade, foreign investment, and the environment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
    6. Bommer, Rolf & Schulze, Gunther G., 1999. "Environmental improvement with trade liberalization," European Journal of Political Economy, Elsevier, vol. 15(4), pages 639-661, November.
    7. 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).
    8. 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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