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Climate, trade and water: A “grand coalition”?

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  • Patrick MESSERLIN

    (Sciences Po Paris)

Abstract

The paper argues first that the climate, trade and water communities should leave aside their prejudices, and it provides clear evidence that the three communities confront the same vested interests when trying to solve their common problem of free riding. Then, it argues that such strong similarities speak in favour of “sister” world regimes in these three domains. These sister regimes should first share the key principles of non-discrimination (national treatment and most favored nation) embodied in the WTO. Second, by contrast, the climate and water communities should review the other WTO rules in order to adapt them to their specific demands when needed. Interestingly, when doing so, these two communities may provide much needed inspiration for improving some rules of the current trade regime. Finally, the climate and water regimes may also adopt provisions on pricing that are not needed by the trade regime which deals mostly with well functioning markets.

Suggested Citation

  • Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
  • Handle: RePEc:fdi:wpaper:610
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    File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/P23_Messerlin_WEB.pdf
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    References listed on IDEAS

    as
    1. Hoekstra, Arjen, 2010. "The relation between international trade and freshwater scarcity," WTO Staff Working Papers ERSD-2010-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Horn, Henrik & Mavroidis, Petros C., 2008. "The Permissible Reach of National Environmental Policies," Working Paper Series 739, Research Institute of Industrial Economics, revised 20 Jun 2008.
    3. de Melo, Jaime & Mathys, Nicole Andréa, 2010. "Trade and Climate Change: The Challenges Ahead," CEPR Discussion Papers 8032, C.E.P.R. Discussion Papers.
    4. Michael O. Moore, 2011. "Implementing Carbon Tariffs: A Fool’s Errand?," The World Economy, Wiley Blackwell, vol. 34(10), pages 1679-1702, October.
    5. Messerlin, Patrick A., 2010. "Climate change and trade policy : from mutual destruction to mutual support," Policy Research Working Paper Series 5378, The World Bank.
    6. Monjon, Stéphanie & Quirion, Philippe, 2010. "How to design a border adjustment for the European Union Emissions Trading System?," Energy Policy, Elsevier, vol. 38(9), pages 5199-5207, September.
    7. Arrow Kenneth J. & Cohen Linda & David Paul A. & Hahn Robert W. & Kolstad Charles D. & Lane Lee & Montgomery W. David & Nelson Richard R. & Noll Roger G. & Smith Anne E., 2009. "A Statement on the Appropriate Role for Research and Development in Climate Policy," The Economists' Voice, De Gruyter, vol. 6(1), pages 1-4, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jaime de Melo & Nicole A. Mathys, 2012. "Concilier les politiques commerciales et les politiques climatiques," Revue d’économie du développement, De Boeck Université, vol. 20(2), pages 57-81.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • 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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