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Are international environmental policies effective? The case of the Rotterdam and the Stockholm Conventions

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  • Núñez-Rocha, Thaís
  • Martínez-Zarzoso, Inmaculada

Abstract

This paper is the first to estimate the effect of two international agreements (Rotterdam Convention, RC, and the Stockholm Convention, SC) in reducing trade in hazardous substances. We estimate the effects of ratification of these agreements on imports of the affected products putting emphasis in the flows from developed countries (OECD) to developing countries (non-OECD) to capture pollution deviation. We use product level data to identify the goods subject to the conventions and the identification strategy relies on the use of difference-in-difference techniques in a panel data framework. We find that when the exporter ratifies the RC and the flow is from OECD to non-OECD countries, a significant reduction of imports in hazardous chemicals is observed after ratification. The magnitude of the effect is a cumulative decrease in imports of about 7 percent. In the case of the SC, the results show significant reductions in trade shipments from OECD to non-OECD countries in persistent organic pollutants for non-OECD importers that have ratified the convention. We observe a reduction of around 16 percent, more than double the effect found for the RC, which was expected due to the different obligations imposed by the respective conventions.

Suggested Citation

  • Núñez-Rocha, Thaís & Martínez-Zarzoso, Inmaculada, 2018. "Are international environmental policies effective? The case of the Rotterdam and the Stockholm Conventions," Center for European, Governance and Economic Development Research Discussion Papers 333, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:333
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    References listed on IDEAS

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    Cited by:

    1. 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.

    More about this item

    Keywords

    hazardous chemicals; persistent organic pollutants; environmental agreements; international trade; gravity model;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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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