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Can Green Lobbies Replace a World Environmental Organization

Author

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  • Conconi, P.

    (University of Warwick, Department of Economics)

Abstract

We employ a common agency model to examine how green lobbies affect the determination of trade and environmental policy in two large countries that are linked through trade flows and transboundary pollution. We show that, when governments are not restricted in their ability to use trade barriers, environmental lobbying always results in higher pollution taxes relative to a no-lobbying scenario. Consequently, uncoordinated environmental policies are closer to the efficient Pigouvian solution than internationally coordinated policies. If, however, governments are bound by international trade rules, green lobbies may bias environmental policies downwards and environmental policy coordination is unambiguously efficiency-enhancing.

Suggested Citation

  • Conconi, P., 2000. "Can Green Lobbies Replace a World Environmental Organization," The Warwick Economics Research Paper Series (TWERPS) 548, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:548
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    File URL: https://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/lobby.pdf
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    References listed on IDEAS

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    1. Grossman, Gene M & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 675-708, August.
    2. B. Douglas Bernheim & Michael D. Whinston, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 101(1), pages 1-31.
    3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, pages 833-850.
    4. Fredriksson, Per G., 1997. "The Political Economy of Pollution Taxes in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 44-58, May.
    5. Aidt, Toke S., 1998. "Political internalization of economic externalities and environmental policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 1-16, July.
    6. Avinash Dixit, 1996. "Special-Interest Lobbying and Endogenous Commodity Taxation," Eastern Economic Journal, Eastern Economic Association, vol. 22(4), pages 375-388, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Houda Haffoudhi, 2005. "Political-support lobbies responses to international environmental agreements," Cahiers de la Maison des Sciences Economiques j05053, Université Panthéon-Sorbonne (Paris 1).
    2. Conconi, P., 2000. "Green and Producer Lobbies: Enemies or Allies?," The Warwick Economics Research Paper Series (TWERPS) 570, University of Warwick, Department of Economics.
    3. 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.

    More about this item

    Keywords

    ENVIRONMENTAL PROTECTION ; INTERNATIONAL TRADE ; POLLUTION;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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