Arbeitspapier

Trade, Trees, and Contingent Trade Agreements

Can trade agreements motivate environmental conservation? I first present a model whereby the government in the South expands its production capacity (e.g., deforest) before trading with the North. After deriving negative relationships between tariff reductions and conservation, I show how all negative results are reversed if countries can negotiate a contingent trade agreement (CTA), where default tariffs vary with changes in the production capacity (or forest cover). A calibration suggests that growth and liberalization can cause Brazil's agricultural area to expand by 27%, but this expansion can be avoided if the EU and the US offer a CTA.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 9596

Klassifikation
Wirtschaft
Trade and Environment
Trade Policy; International Trade Organizations
International Institutional Arrangements
Nonrenewable Resources and Conservation: Issues in International Trade
Thema
international trade
trade agreements
deforestation
environmental conservation

Ereignis
Geistige Schöpfung
(wer)
Harstad, Bård
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Harstad, Bård
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2022

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