Are greener RTAs reducing “dirty” exports?

Li Cao, Dahai Fu and Ying Zhang
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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

Economic Analysis Letters, 2023, vol. 2, issue 4, 7-12

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.

Keywords: Regional trade agreements; environmental provisions; gravity model; trade diversion (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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