The Role of TTIP on the Environment

Abstract

The current study empirically investigates and shows that, on average, the possible implementation of the Transatlantic Trade and Investment Partnership (TTIP) would generally help in the fight against global warming. In particular, the study finds that a 1% increase in the bilateral trade between the United States and the typical EU member would reduce annual per capita emissions of CO2 and GHGs in the typical TTIP member by about 2.7% and 2.4%, respectively. However, results also show that TTIP may increase annual per capita emissions of GHGs in the United States by about 2.5% per year. These results stand because the factor endowment hypothesis and the pollution haven hypothesis based on population density variations appear to dominate the pollution haven hypothesis based on national income differences.

The Role of CETA on Carbon Dioxide, F-Gasses, Methane, and Nitrous Oxide

“…Qirjo et al (2019) where they analyze the impacts of GHGs in general in the presence of CETA. It is also consistent with Pascalau and Qirjo (2017a) or Qirjo and Pascalau (2019b), where they empirically analyze the impacts of TTIP on per capita emissions of GHGs and CO 2 , respectively. The current study finds positive but mainly statistically insignificant evidence of a positive relationship between the trade variable and the F-Gasses (see Table 7).…”

“…This latter fact could explain why Canada may act as pollution haven due to the implementation of CETA following PPH2, while this is less apparent in the case of the US as a results of a possible implementation of TTIP. Using an analogous intuition, one may also explain the clear evidence of the presence of FEH in the TTIP as reported in Qirjo and Pascalau (2019b). Something that is less apparent in the current study.…”

“…The current paper is analogous to Qirjo and Pascalau (2019b) and Qirjo and Pascalau (2019a) studies. These two latter studies empirically investigate the impacts of the potential Transatlantic Trade and Investment Partnership (TTIP) on several pollutants.…”

“…Something that is less apparent in the current study. Qirjo and Pascalau (2019b) show that there is a shift of emissions per capita of GHGs and CO 2 , respectively, from an average EU member towards the US, mainly because of FEH, due to the possible implementation of TTIP. However, this is not the case for Canada when focusing on these two air pollutants as a result of the implementation of CETA.…”

“… See Antweiler et al (2001),Davis and Caldeira (2010),Qirjo and Christopherson (2016),Qirjo and Pascalau (2019b), andQirjo et al (2019), who among others, provide empirical evidence consistent with FEH.4 There is plenty of empirical research that empirically validate the claim the capital-intensive goods are more pollution-intensive goods as compared to the labor-intensive ones (e.g.,Jaffe et al (1995),Cole and Elliott (2003)). 5 Mathematically, we use the following weighting scheme when constructing the three-years lagged moving average of income per capita:I it = .6 * I it−1 + .3 * I it−2 + .1 * I it−3 .6 SeeLevinson and Taylor (2008),Cole and Fredriksson (2009) andQirjo and Pascalau (2019b) who among others, find empirical evidence in support of PHH1.…”