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Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes

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  • Jevan Cherniwchan
  • Nouri Najjar

Abstract

We test the hypothesis that governments alter environmental policy in response to trade by studying NAFTA’s effects on the formation of environmental policy in the US House of Representatives between 1990 and 2000. We find that reductions in US tariffs decreased political support for environmental legislation. This decrease appears to be due to: (i) a reduction in support by incumbent Republican legislators in response to trade-induced changes in the policy preferences of their constituents, and (ii) changes in partisan representation in affected districts due to decreased electoral support for pro-NAFTA Democrats following the agreement.

Suggested Citation

  • Jevan Cherniwchan & Nouri Najjar, 2023. "Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes," Department of Economics Working Papers 2023-05, McMaster University.
    • Handle: RePEc:mcm:deptwp:2023-05
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    Cited by:

    1. Jevan Cherniwchan & M.Scott Taylor, 2022. "International Trade and the Environment: Three Remaining Empirical Challenges," Carleton Economic Papers 22-03, Carleton University, Department of Economics.

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    More about this item

    Keywords

    NAFTA; trade liberalization; voting; environmental policy;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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