Are greener RTAs reducing “dirty” exports?

Authors

  • Li Cao School of International Trade and Economics, Central University of Finance and Economics, Beijing, China
  • Dahai Fu School of International Trade and Economics, Central University of Finance and Economics, Beijing, China
  • Ying Zhang Institute of Economics, Chinese Academy of Social Sciences, Beijing, China

DOI:

https://doi.org/10.58567/eal02040002

Keywords:

Regional trade agreements; environmental provisions; gravity model; trade diversion

Abstract

We examine the impact of environmental provisions in regional trade agreements (RTAs) on the environmentally harmful exports. Results show that environmental clauses in RTAs help reduce “dirty” exports, whereas RTA depth promotes exports. The exporting country may divert its polluting exports to its trading partner if it faces more environmental provisions with other countries.

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Published

2023-07-17

How to Cite

Cao, L., Fu, D., & Zhang, Y. (2023). Are greener RTAs reducing “dirty” exports?. Economic Analysis Letters, 2(4), 7–12. https://doi.org/10.58567/eal02040002

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