NAFTA and Industrial Pollution: Some General Equilibrium Results

Reinert, Kenneth A.; Roland‐Holst, David

doi:10.11130/jei.2001.16.2.165

Cited by 40 publications

(9 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, the findings of [39] negated those of [29], which suggested an insignificant impact of trade openness on the Mexican environment under NAFTA. Reference [40] also concentrated on the effects of NAFTA on industrial pollution in the United States, Mexico, and Canada. It showed that the metal, transportation equipment, and petroleum sectors had severe adverse effects on the environment, and industrial pollution in Mexico under NAFTA.…”

Section: Hypothesis 2 If Ftas Increase Then Bilateral Co 2 Emissionmentioning

confidence: 99%

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Yao

Yasmeen

et al. 2019

Sustainability

View full text Add to dashboard Cite

Free trade agreements (FTAs) have a key role in the global value chain. In the meantime, these are also disturbing the environmental balance of the world. The objective of this study is to check whether the trade is good or bad for the environments of countries that are bonded by trade agreements. This study examines the impact of FTAs on bilateral carbon emissions within the gravity framework. We find a positive impact of FTA agreements on bilateral CO2 pollution. However, in an income-based country group analysis, we find mixed evidence regarding FTAs. The analysis concerning high income countries indicates that free trade agreements are beneficial for high income countries, while, in the case of upper middle income and lower middle income countries, we find that the free trade agreements are not beneficial for their environments. These results of the effects of FTAs on bilateral CO2 pollution imply that low income countries have a greater pollution effect even after the implementation of an FTA due to lenient environmental standards. There is a need for developing countries to learn from high income countries, as their FTAs are beneficial for decreasing pollution.

show abstract

Section: Hypothesis 2 If Ftas Increase Then Bilateral Co 2 Emissionmentioning

confidence: 99%

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Yao

Yasmeen

et al. 2019

Sustainability

View full text Add to dashboard Cite

show abstract

“…In contrast, Reinert and Roland-Holst (2001) used a general equilibrium model to study the effect of NAFTA on environmental quality for the three countries under this agreement. They found that most pollution types increased in the three countries due to the NAFTA agreement.…”

Section: Literature Reviewmentioning

confidence: 99%

“…On the one hand, some researchers find trade agreements improve environmental quality (Antweiler et al., ; Birdsall & Wheeler, ; Lucas, Wheeler, & Hettige, ; Wheeler & Martin, ). On the other hand, some studies find that trade agreements reduce environmental quality (Frankel & Rose, ; Reinert & Roland‐Holst, ; Rock, ; Yu, Kim, & Cho, ). Other studies find no statistically significant relationship between environmental quality and FTAs (Gale & Mendez, ).…”

Section: Introductionmentioning

confidence: 99%

Are free trade agreements good for the environment? A panel data analysis

Nemati¹,

Reed

2018

Review Development Economics

View full text Add to dashboard Cite

This study empirically examines the relationship between free trade agreements (FTAs) and greenhouse gas (GHG) emissions. For this purpose, we use three different FTAs: the Southern Common Market, the North American Free Trade Agreement, and the Australia–United States Free Trade Agreement. These FTAs are between developing, both developing and developed, and only developed countries, respectively. Panel unit root, panel cointegration, and fully modified ordinary least squares estimations are employed to examine the long‐run relationship between GHG emissions and trade liberalization. The results indicate that the environmental effects of FTAs depend on the different agreement types. When FTAs are between only developed or developing countries, overall there is no environmental damage, and these types of FTAs can be beneficial for the environmental quality in the long run. However, when developing and developed countries are in a trade agreement, overall environmental quality decreases due to increased GHG emissions.

show abstract

“…Logsdon and Husted (2000) found that the impact of NAFTA on environmental quality in Mexico is mixed, and they could not determine either a positive or negative impact of this agreement. Reinert and Roland-Holst (2001) used a general equilibrium model for the three countries under the NAFTA agreement.…”

Section: Literature Reviewmentioning

confidence: 99%

Are Free Trade Agreements Good for the Environment? A Panel Data Analysis

Nemati

Reed

2016

SSRN Journal

View full text Add to dashboard Cite

This study attempts to empirically reexamine the relationship between free trade agreements (FTAs) and greenhouse gas (GHG) emissions. For this aim, we chose three different free trade agreements: Southern Common Market (MERCOSUR), North American Free Trade Agreement (NAFTA), and the Australia-United States Free Trade Agreement (AUSFTA). These FTAs are between developing countries, developed and developing countries, and only developed countries, respectively. Panel unit root, panel cointegration, and fully modified OLS (FMOLS) estimators are employed to find the longrun relationship between GHG emission, trade liberalization, and other economic factors. The results indicate that the environmental effect of a free trade agreement depends on the agreement type. When the agreement is among only developed or only developing countries, there is no environmental damage to the world and these types of FTAs can be beneficial for the world environment. However, when developing and developed countries are in the agreement, world GHG emissions increase.

show abstract

NAFTA and Industrial Pollution: Some General Equilibrium Results

Abstract: In recent years, a surge of interest in the linkages between trade and the environment has occurred in the contexts• JEL Classifications: F15, Q2, C6•

Cited by 40 publications

References 23 publications

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Are free trade agreements good for the environment? A panel data analysis

Are Free Trade Agreements Good for the Environment? A Panel Data Analysis

Contact Info

Product

Resources

About