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
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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
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Objekttyp
- Arbeitspapier
Beteiligte
- Harstad, Bård
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2022