Arbeitspapier

Multilateral Environmental Agreements and Trade Obligations: A Theoretical Analysis of the Doha Proposal

The Doha declaration on trade and environment proposed to clarify the relationship between multilateral environmental agreement (MEA) trade obligations and WTO rules by only guaranteeing economic integration upon ratification of certain MEAs. In other words, it pushed to authorize the use of trade measures against non-compliance, denying a non-signatory of its WTO rights to exercise countervailing tariffs. This paper demonstrates that the Doha proposal can be effective when environmental policy and its trade obligations are endogenous. Under plausible circumstances, ratification by a non-signatory to the MEA along with free trade as a reward is the unique equilibrium outcome. Delocation to pollution havens does not occur, as optimal tariffs are positive if standards are not adopted. Tariffs however only work as a credible threat and do not emerge in equilibrium. Results are consistent with broad empirical evidence that opposes the pollution haven hypothesis and suggests capital movements to be non-pollution related.

Language
Englisch

Bibliographic citation
Series: Nota di Lavoro ; No. 52.2005

Classification
Wirtschaft
Trade Policy; International Trade Organizations
Trade and Environment
Multinational Firms; International Business
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
Production Analysis and Firm Location: Government Policy
Subject
Environmental policy
WTO
Location of firms
Green tariffs
Multilateral environmental agreements
Doha declaration

Event
Geistige Schöpfung
(who)
Naghavi, Alireza
Event
Veröffentlichung
(who)
Fondazione Eni Enrico Mattei (FEEM)
(where)
Milano
(when)
2005

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Naghavi, Alireza
  • Fondazione Eni Enrico Mattei (FEEM)

Time of origin

  • 2005

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