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Trade in Fuels and Environmental Regulation: A Two-Sided Story

Author

Listed:
  • Thais Nunez-Rocha

    (LEO - Laboratoire d'Économie d'Orleans [FRE2014] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

  • Camélia Turcu

    (LEO - Laboratoire d'Économie d'Orleans [FRE2014] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we show how environmental regulation affects trade in fuels. The regulation is assessed along two dimensions: one tackling the extraction and another one dealing with the use of fuels. Using a gravity model with 141 countries for the period 1998-2015, we show that regulations on the extraction of fuels have no impact on trade compared to those related to the use of these non-renewable resources. Specifically, we find that introducing Energy laws slows down fuels trade at the world level and that if importers get involved in more international environmental treaties, they will import less fuels.

Suggested Citation

  • Thais Nunez-Rocha & Camélia Turcu, 2019. "Trade in Fuels and Environmental Regulation: A Two-Sided Story," Post-Print insu-02312442, HAL.
    • Handle: RePEc:hal:journl:insu-02312442
    DOI: 10.1057/s41294-018-0081-5
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    Cited by:

    1. Christopher A. Hartwell & Roman Horvath & Eva Horvathova & Olga Popova, 2019. "Democratic Institutions, Natural Resources, and Income Inequality," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(4), pages 531-550, December.
    2. Saida Daly & Mohamed Abdouli, 2023. "The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 579-598, July.
    3. Thais NUNEZ-ROCHA & Inmaculada MARTíNEZ-ZARZOSO, 2018. "Is National Environmental Legislation Affecting Emissions?," LEO Working Papers / DR LEO 2505, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    4. Usman, Ahmed & Ullah, Sana & Ozturk, Ilhan & Sohail, Sidra & Sohail, Muhammad Tayyab, 2024. "Does environmental policy stringency reduce trade in energy resources? Insights from coal, petroleum, and gas," Resources Policy, Elsevier, vol. 89(C).
    5. Peiró-Palomino, Jesús & Rodríguez-Crespo, Ernesto & Suárez-Varela, Marta, 2022. "Do countries with higher institutional quality transition to cleaner trade?," Ecological Economics, Elsevier, vol. 201(C).

    More about this item

    Keywords

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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