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

In: Trade Policies for Development and Transition

Author

Listed:
  • 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 CO2 emissions through technique (−), composition (+) and scale (+) effects. We consider three complementary policies to limit CO2 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, 2017. "Market Structure and the Environmental Implications of Trade Liberalization: Russia’s Accession to the World Trade Organization," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 20, pages 459-485, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813108448_0020
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    Cited by:

    1. is not listed on IDEAS
    2. Anna Burova & Elena Deryugina & Nadezhda Ivanova & Maxim Morozov & Natalia Turdyeva, 2023. "Transmission to a low-carbon economy and its implications for financial stability in Russia," Bank of Russia Working Paper Series wps109, Bank of Russia.
    3. Natalia Turdyeva, 2024. "Russian Economic Transformation: Navigating Climate Policy and Trade Restrictions," Bank of Russia Working Paper Series wps125, Bank of Russia.
    4. Davydova Altana, 2023. "Comparing scenarios of the carbon regulation for the BRICS and EAEU economies using the GTAP-E model," Working Papers 0058, Moscow State University, Faculty of Economics.

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    JEL classification:

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

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