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Can Green Lobbies Replace a World Environmental Organization?

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  • Conconi, Paola

Abstract

We employ a common agency model to examine how green lobbies a®ect the determination of trade and environmental policy in two large countries that are linked through trade °ows and transboundary pollution. We show that, when governments are not restricted in their ability to use trade barriers, environmental lobbying always results in higher pollution taxes relative to a no-lobbying scenario. Consequently, uncoordinated environmental policies are closer to the e±cient Pigouvian solution than internationally coordinated policies. If, however, governments are bound by international trade rules, green lobbies may bias environmental policies downwards and environmental policy coordination is unambiguously e±ciency-enhancing.

Suggested Citation

  • Conconi, Paola, 2000. "Can Green Lobbies Replace a World Environmental Organization?," Economic Research Papers 269300, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269300
    DOI: 10.22004/ag.econ.269300
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    References listed on IDEAS

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    1. Grossman, Gene M & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 675-708, August.
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    5. Aidt, Toke S., 1998. "Political internalization of economic externalities and environmental policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 1-16, July.
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    Cited by:

    1. Conconi, P., 2000. "Green and Producer Lobbies: Enemies or Allies?," The Warwick Economics Research Paper Series (TWERPS) 570, University of Warwick, Department of Economics.
    2. repec:got:cegedp:65 is not listed on IDEAS
    3. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    4. Houda Haffoudhi, 2005. "Political-support lobbies responses to international environmental agreements," Cahiers de la Maison des Sciences Economiques j05053, Université Panthéon-Sorbonne (Paris 1).
    5. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 204, Economics Division, School of Social Sciences, University of Southampton.
    6. Houda Haffoudhi, 2005. "Political-support lobbies responses to international environmental agreements," Post-Print halshs-00195593, HAL.
    7. Stoschek, Barbara, 2007. "The political economy of environmental regulations and industry compensation," University of Göttingen Working Papers in Economics 65, University of Goettingen, Department of Economics.

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    More about this item

    Keywords

    Environmental Economics and Policy; International Relations/Trade; Political Economy;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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