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Free Trade Agreements with Environmental Provisions Between Asymmetric Countries: Transfer of Clean Technology and Enforcement

Author

Listed:
  • Hideo Konishi

    (Boston College)

  • Minoru Nakada

    (Nagoya University)

  • Akihisa Shibata

    (Kyoto University)

Abstract

This paper investigates the e§ects of a free trade agreement (FTA) with environmental provisions between northern and southern countries. We explicitly consider clean technology transfers from the North to the South and the enforcement levels of adopting clean technology in the South, which have not been discussed so far. Southern producers beneÖt greatly from having unimpeded access to a northern market, but they are reluctant to use new high-cost, clean technology provided by the North. We investigate how environmentally conscious northern countries could design an FTA in which southern countries are provided with sufficient membership benefits but follow tighter enforcement requirements. We provide a quantitative evaluation of FTA policies using a numerical example.

Suggested Citation

  • Hideo Konishi & Minoru Nakada & Akihisa Shibata, 2023. "Free Trade Agreements with Environmental Provisions Between Asymmetric Countries: Transfer of Clean Technology and Enforcement," Boston College Working Papers in Economics 1063, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:1063
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    References listed on IDEAS

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    More about this item

    Keywords

    Free trade agreements; Deep integration; Technology transfer; Monetary transfer; Environmental provisions; Enforcement;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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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