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Environmental Policy, International Agreement and International Trade

Ziel

To provide new theoretical analyses of the interactions between environmental policy and international trade policy and to develop models which allow the application of these analyses to the study of EC environmental and trade policies.

The project researches the following linkages:

i) transboundary pollution, pollution of the global commons and international agreements;

ii) domestic environmental problems and international competitiveness;

iii) international trade policies and the enforcement of international environmental agreements.

The research has the following features:

i) an examination of the implications of the assumption that countries have some degree of market power, for environmental policy design. Particular aspects include the effects of environmental policy on the location decisions of producers, and their incentives to conduct environmental Research & Development;

ii) a model is built to assess the cost and benefits of joining an international agreement and the stability of such an agreement, when trade is non-competitive but not monopolistic;

iii) an exploration how the incentives to join international agreements can be affected by financial transfers, or by linking agreement on environmental issues to agreement on trade issues;

iv) the study examines the issue of "free riders" to international agreements, who gain the advantage of the benefits of cooperative abatement but do not shoulder the costs and therefore are at a competitive advantage.

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Koordinator

Centre for Economic Policy Research
EU-Beitrag
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Adresse
25-28 Old Burlington Street
W1X 1LB London
Vereinigtes Königreich

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