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The effects of environmental provisions in RTAs on PM2.5 air pollution

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  • Li Zhou
  • Xi Tian
  • Zhengyi Zhou

Abstract

This article examines the effect of regional trade agreements (RTAs) with and without environmental provisions on the concentration of PM2.5 (fine particulate matter $$ \le 2.5\,{\rm{\mu m}}$$≤2.5μm in diameter), which is one of the most significant air pollutants. Using panel data for 136 countries from 2001 to 2010, we estimate the effect of trade liberalization under RTAs and the effect of environmental regulations under RTAs with environmental provisions. Moreover, paired countries are used to examine the effect of RTAs with environmental provisions on the convergence of PM2.5 concentrations. Human behaviours and natural characteristics are added as control variables, and the potential endogeneity and environmental provisions of RTAs as well as the gross domestic product and openness of specific regions are addressed using instrumental variables or difference-in-differences after propensity score matching. The main results indicate that RTAs without environmental provision terms lead to worse air quality in terms of PM2.5 concentrations, whereas RTAs with environmental provision terms are likely to be associated with a lower level of PM2.5 concentrations. In addition, RTAs with environmental provisions, especially environmental cooperation provisions, facilitate the convergence of PM2.5 concentrations between contracting countries, which can be explained by the late-mover advantage after distinguishing North–South, South–South and North–North trade forms.

Suggested Citation

  • Li Zhou & Xi Tian & Zhengyi Zhou, 2017. "The effects of environmental provisions in RTAs on PM2.5 air pollution," Applied Economics, Taylor & Francis Journals, vol. 49(27), pages 2630-2641, June.
  • Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2630-2641
    DOI: 10.1080/00036846.2016.1243218
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    Citations

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    Cited by:

    1. Sorgho, Zakaria & Tharakan, Joe, 2022. "Do PTAs with environmental provisions reduce GHG emissions? Distinguishing the effectiveness of climate-related provisions," LIDAM Discussion Papers CORE 2022012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Haas, Levi & Schenk-Hoppé, Klaus R., 2019. "International Trade: Smarten up to talk the talk," MPRA Paper 99096, University Library of Munich, Germany.
    3. Zakaria Sorgho & Tharakan Joe, 2020. "Do PTAs with environmental provisions reduce emissions? Assessing the effectiveness of climate-related provisions?," Working Papers hal-03004353, HAL.
    4. William Bekoe & Talatu Jalloh, 2023. "Assessing the Economic Implications of Free Trade on Environmental Quality: Empirical Evidence from Africa," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 19-36, January.
    5. Inmaculada Martínez-Zarzoso & Walid Oueslati, 2018. "Do deep and comprehensive regional trade agreements help in reducing air pollution?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(6), pages 743-777, December.
    6. Morin, Jean-Frédéric & Chaudhuri, Vera & Gauquelin, Mathilde, 2018. "Do trade deals encourage environmental cooperation?," Briefing Papers 8/2018, German Institute of Development and Sustainability (IDOS).
    7. Basak Bayramoglu & Estelle Gozlan & Clément Nedoncelle & Thibaut Tarabbia, 2023. "Trade Agreements and Sustainable Fisheries [Accords commerciaux et pêche durable]," Working Papers hal-04101044, HAL.
    8. Zakaria Sorgho & Joe Tharakan, 2022. "Do PTAs with Environmental Provisions Reduce GHG Emissions? Distinguishing the Role of Climate-Related Provisions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 709-732, November.
    9. Brandi, Clara & Schwab, Jakob & Berger, Axel & Morin, Jean-Frédéric, 2020. "Do environmental provisions in trade agreements make exports from developing countries greener?," World Development, Elsevier, vol. 129(C).

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