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The global welfare effects of international environmental cooperation


  • Csordas, Stefan


This study explores the global welfare effects of international environmental agreements (IEAs) that coordinate emission policies between exporter countries. We show that, when export markets are imperfectly competitive, IEAs might cause a global welfare loss even if non-signatories benefit from lower emission levels. This result is due to a loss of consumer surplus in importer countries. From a global welfare perspective, the desirability of IEAs depends on the size of the domestic market for the export good and the harmfulness of emissions.

Suggested Citation

  • Csordas, Stefan, 2009. "The global welfare effects of international environmental cooperation," MPRA Paper 20787, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:20787

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    References listed on IDEAS

    1. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    2. Jonathan Eaton & Gene M. Grossman, 1986. "Optimal Trade and Industrial Policy Under Oligopoly," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 383-406.
    3. Greaker, Mads, 2003. "Strategic environmental policy; eco-dumping or a green strategy?," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 692-707, May.
    4. Burguet, Roberto & Sempere, Jaume, 2003. "Trade liberalization, environmental policy, and welfare," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 25-37, July.
    5. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    6. Klaus Conrad, 2001. "Voluntary Environmental Agreements vs. Emission Taxes in Strategic Trade Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 361-381, August.
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    More about this item


    Strategic environmental policy; international environmental agreements;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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


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