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Promoting International Environmental Cooperation Through Unilateral Action: When Can Trade Sanctions Help?

Author

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  • Johannes Urpelainen

    (Johannes Urpelainen is assistant professor of political science at Columbia University.)

Abstract

International environmental cooperation is difficult because states disagree on burden sharing and have incentives to free ride. However, interested countries can promote future cooperation through unilateral action that induces technological change in and, thereby, shapes the preferences of foreign countries. How can the effectiveness of such unilateral action be improved? This article offers a game-theoretic analysis of the value of combining unilateral action with trade sanctions, or policies that force foreign exporters to comply with domestic environmental regulations. Trade sanctions can significantly improve the effectiveness of unilateral action, but only when (1) they induce clean technology adoption by exporters in targeted countries and (2) this reduces the cost of clean technology elsewhere in the economy through intersectoral technology spillovers. © 2013 by the Massachusetts Institute of Technology.

Suggested Citation

  • Johannes Urpelainen, 2013. "Promoting International Environmental Cooperation Through Unilateral Action: When Can Trade Sanctions Help?," Global Environmental Politics, MIT Press, vol. 13(2), pages 26-45, May.
    • Handle: RePEc:tpr:glenvp:v:13:y:2013:i:2:p:26-45
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    Cited by:

    1. Joanna I. Lewis, 2014. "The Rise of Renewable Energy Protectionism: Emerging Trade Conflicts and Implications for Low Carbon Development," Global Environmental Politics, MIT Press, vol. 14(4), pages 10-35, November.

    More about this item

    Keywords

    international environmental cooperation; trade sanctions; environmental regulations; clean technology;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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