scholarly journals Free Trade, Autarky And The Sustainability Of An International Environmental Agreement

2021 ◽  
Author(s):  
Hassan Benchekroun ◽  
Halis Murat Yildiz

We determine the impact of free trade on the sustainability of an international environmental agreement (IEA) and incorporate it into the assessment of the net benefits of opening up to free trade. We show that such an analysis can reverse the conclusions reached within a standard one-shot game framework. First, we examine a one shot game and argue that the benefits from an increase in economic activity due to free trade outweigh the extra cost of free trade associated with larger environmental damage. Then, we analyze the infinite repetition of the one-shot game where countries can use trigger strategies and show that there exist circumstances where an IEA is sustainable under autarky but not under free trade. This aggravates the environmental damages caused by free trade and leads to the possibility that autarky may welfare dominate free trade. This conclusion remains valid even when countries adopt the most cooperative environmental policy when the "fully cooperative" environmental policy is not sustainable.

2021 ◽  
Author(s):  
Hassan Benchekroun ◽  
Halis Murat Yildiz

We determine the impact of free trade on the sustainability of an international environmental agreement (IEA) and incorporate it into the assessment of the net benefits of opening up to free trade. We show that such an analysis can reverse the conclusions reached within a standard one-shot game framework. First, we examine a one shot game and argue that the benefits from an increase in economic activity due to free trade outweigh the extra cost of free trade associated with larger environmental damage. Then, we analyze the infinite repetition of the one-shot game where countries can use trigger strategies and show that there exist circumstances where an IEA is sustainable under autarky but not under free trade. This aggravates the environmental damages caused by free trade and leads to the possibility that autarky may welfare dominate free trade. This conclusion remains valid even when countries adopt the most cooperative environmental policy when the "fully cooperative" environmental policy is not sustainable.


Author(s):  
Hassan Benchekroun ◽  
Halis Murat Yildiz

Abstract We determine the impact of free trade on the sustainability of an international environmental agreement (IEA) and incorporate it into the assessment of the net benefits of opening up to free trade. We show that such an analysis can reverse the conclusions reached within a standard one-shot game framework. We first examine a one shot game and show that the benefits from an increase in economic activity due to free trade outweigh the extra cost of free trade associated with larger environmental damage. We then consider the infinite repetition of the one-shot game where countries can use trigger strategies and show that there exist circumstances where an IEA is sustainable under autarky but not under free trade. This aggravates the environmental damages caused by free trade and leads to the possibility that welfare may be smaller under free trade than under autarky. This conclusion remains valid even when (i) countries adopt the most cooperative environmental policy when the “fully cooperative” environmental policy is not sustainable or (ii) we consider “intermediate tariff reductions.”


2002 ◽  
Vol 8 (1) ◽  
pp. 57-76 ◽  
Author(s):  
Ian W.H. Parry

This paper draws on a number of recent studies to shed light on several policy issues raised by the impact of environmental policies on technological innovation. First, to what extent does induced innovation raise the overall net benefits to society from environmental policies? Second, how does induced innovation affect the appropriate choice among alternative environmental policy instruments? Third, how does it affect the optimal stringency of environmental regulations? Fourth, should environmental policies be supplemented with additional policies to promote innovation, such as research contracts or prizes for new technologies?


2020 ◽  
pp. 1-36
Author(s):  
Antoine Le Riche

This paper analyzes the impact of trade on the stability properties of trading countries and on stationary welfare. We consider a two-country two-good two-factor overlapping generations model where countries differ in terms of their technology. In the autarky equilibrium and the free-trade equilibrium, indeterminacy relies, under dynamic efficiency, on a capital intensive consumption good and intermediate values of the elasticity of intertemporal substitution in consumption. Opening the borders to trade can be a source of a global destabilizing effect. Indeed, considering a free-trade equilibrium in which one country is an exporter of the consumption good and the other country is an exporter of the investment good, indeterminacy can occur with trade even though the two countries are determinate in autarky. Finally, opening to trade increases the stationary welfare of the country that exports the investment good and deteriorates the one of the other country.


2021 ◽  
Vol 17 (38) ◽  
pp. 102
Author(s):  
Zineb Mikdam

Cet article s’intéresse à l’étude de l’impact du processus d’intégration du Maroc dans l’espace euro-méditerranéen en particulier en termes d’échanges commerciaux, en examinant les effets de la politique libreéchangiste adoptée par le Maroc dans l’espace euro-méditerranéen et son intérêt dans la promotion du potentiel commercial du pays. A travers une modélisation économétrique basée sur l’approche gravitationnelle qui semble être d’une grande utilité, l’étude a permis de distinguer entre les effets des accords de libre-échange conclus par le Maroc avec les pays arabes méditerranéens et la Turquie d’une part, et avec l’UE d’autre part. De même, ce modèle a permis d’apprécier l’intérêt de la variable gravitationnelle à savoir, la distance et ses effets explicatifs du commerce marocain intrarégional. Il est à noter d’après cette étude économétrique que les accords de libre-échange ont certainement contribué à la croissance des échanges du Maroc avec ses partenaires méditerranéens, alors que d’autres facteurs, à savoir la distance, le taux de change et l’existence d’une langue commune influencent positivement mais d’une manière négligeable les échanges commerciaux du Maroc dans l’espace euro-méditerranéen. Ainsi, et afin de consolider les effets positifs de ces accords de libre-échange, le pays doit adopter stratégies internes de promotion des secteurs économiques à fort potentiel d’exportation dans la perspective de stimuler ses exportations vers ses partenaires euro-méditerranéens. This article focuses on studying the impact of Morocco's integration process in the Euro-Mediterranean area, particularly in terms of trade, by examining the effects of the free trade policy adopted by Morocco in the EuroMediterranean area and its implication in promoting the country's commercial potential. Through an econometric model based on the gravitational approach which seems to be of great use, the study made it possible to distinguish between the effects of the free trade agreements concluded by Morocco with the Mediterranean Arab countries and Turkey on the one hand and with the EU on the other hand. Moreover, this model helped to appreciate the interest of the gravitational variable namely the distance and its explanatory effects of intra-regional Moroccan trade. We note from this econometric study that free trade agreements have certainly contributed to the growth of Morocco's trade with its Mediterranean partners, while other factors, which are the distance, the exchange rate and the existence of a common language, influence in a negligible positive way the commercial exchanges of Morocco in the EuroMediterranean area. In order to consolidate the positive effects of these free trade agreements, Morocco must adopt internal strategies that aim to promote economic sectors with high export potential which can lead to stimulating its exports toward its Euro-Mediterranean partners.


Author(s):  
Zhao Difei ◽  
Zheng Weiteng

Since reform and opening up, as an important factor of economic growth, trade has promoted the development of China’s economy sharply, at the same time, it brought about the destruction of the ecological environment which is the focus of academic debate. There is still not any definite conclusion about the impact of trade on the environment. In this paper, by establishing a measurement model, we calculate the environmental effects of trade from scale, technology and structure three aspects, conclusion shows that the structure effect and technology effect of liberalization of trade will improve the level of China’s environment, but the scale effect of trade while promoting economic expansion will cause environmental damage


2015 ◽  
Vol 15 (3) ◽  
pp. 33-39 ◽  
Author(s):  
David Evans

This paper considers the relationship between social science and the food industry, and it suggests that collaboration can be intellectually productive and morally rewarding. It explores the middle ground that exists between paid consultancy models of collaboration on the one hand and a principled stance of nonengagement on the other. Drawing on recent experiences of researching with a major food retailer in the UK, I discuss the ways in which collaborating with retailers can open up opportunities for accessing data that might not otherwise be available to social scientists. Additionally, I put forward the argument that researchers with an interest in the sustainability—ecological or otherwise—of food systems, especially those of a critical persuasion, ought to be empirically engaging with food businesses. I suggest that this is important in terms of generating better understandings of the objectionable arrangements that they seek to critique, and in terms of opening up conduits through which to affect positive changes. Cutting across these points is the claim that while resistance to commercial engagement might be misguided, it is nevertheless important to acknowledge the power-geometries of collaboration and to find ways of leveling and/or leveraging them. To conclude, I suggest that universities have an important institutional role to play in defining the terms of engagement as well as maintaining the boundaries between scholarship and consultancy—a line that can otherwise become quite fuzzy when the worlds of commerce and academic research collide.


2013 ◽  
Vol 12 (7) ◽  
pp. 451-459
Author(s):  
Ashraf Yehia El-Naggar ◽  
Mohamed A. Ebiad

Gasoline come primarily from petroleum cuts, it is the preferred liquid fuel in our lives. Two gasoline samples of octane numbers 91 and 95 from Saudi Arabia petrol stations were studied. This study was achieved at three different temperatures 20oC, 30oC and 50oC representing the change in temperatures of the different seasons of the year. Both the evaporated gases of light aromatic hydrocarbons (BTEX) of gasoline samples inside the tank were subjected to analyze qualitatively and quantitatively via capillary gas chromatography. The detailed hydrocarbon composition and the octane number of the studied gasoline samples were determined using detailed hydrocarbon analyzer. The idea of research is indicating the impact of light aromatic compounds in gasoline on the toxic effect of human and environment on the one hand, and on octane number of gasoline on the other hand. Although the value of octane number will be reduced but this will have a positive impact on the environment as a way to produce clean fuel.


2017 ◽  
Vol 13 ◽  
pp. 244-261
Author(s):  
Mariola Tracz ◽  
Małgorzata Bajgier-Kowalska ◽  
Radosław Uliszak

Podkarpackie Voivodeship is one of the regions of Poland in which the number of agritourism entities is very high. Therefore tourism plays a significant role in its development strategy. The aim of the paper is to identify the current state of agritourism and the changes that have occurred in the region in the years 2000–2016. Specific objectives are to determine the distribution of agritourism farms and their offer, together with a comprehensive analysis of the environmental and socio-economic factors, as well as the impact of the Slovak-Ukrainian border. The report was developed on the statistical materials from the Polish Central Statistical Office, Podkarpackie Agricultural Advisory Centre in Boguchwała and data collected from municipalities and district offices that is published on their websites, as well as through interviews with 100 owners of agritourism farms in the Podkarpackie Voivodeship. The research has shown, on the one hand, the decline in the number of farms in the region and, on the other hand, the increase in the diversity of the tourist offer of these entities. Distribution of agritourism farms is closely linked to the attractiveness of natural environment and quality of secondary tourism resources. Traditional agritourism has not yet fully used its countryside, as well as cross-border advantages of its location.


2014 ◽  
Vol 1 (1) ◽  
pp. 90-109
Author(s):  
Stephen De la Harpe

The promotion of international trade is seen as one of the important instruments to ensure development in developing nations and regions. The history of the World Trade Organisation (WTO) and the drafting of many regional and similar international trade agreements are evidence of this. The Southern African Development Community (SADC) is no exception.1 It is therefore strange that many states that are members of the WTO and actively encourage the opening up of international borders to free trade do not include public procurement2 in such free trade arrangements. This is particularly evident in developing states. If the WTO Government Procurement Agreement (GPA), which is a plurilateral agreement, is considered it is clear that many states do not wish to open their internal markets to competition in the public procurement sphere. It is therefore not surprising that public procurement has been described as the last rampart of state protectionism (Ky, 2012). Public procurement is an important segment of trade in any country (Arrowsmith & Davies, 1998). It is estimated that public procurement represents between 10% and 15% of the gross domestic product (GDP) of developed countries and up to 25% of GDP in developing states (Wittig, 1999). Unfortunately, governments often expect private industry to open up national markets for international competition but do not lead the way. Except for the limited use of pooled procurement,3 no specific provision is at present made for the harmonisation and integration of public procurement in the SADC. In view of the proximity of the member states, the interdependency of their economies and the benefits that can be derived from opening up their boundaries to regional competition in public procurement, the possibility of harmonisation and deeper integration in this sphere needs to be given more attention. The importance of public procurement in international trade and regional integration is twofold: first, it forms a substantial part of trade with the related economic and developmental implications; secondly, it is used by governments as an instrument to address socio-economic issues. Public procurement spending is also important because of its potential influence on human rights, including aspects such as the alleviation of poverty, the achievement of acceptable labour standards and environmental goals, and similar issues (McCrudden, 1999). In this article the need to harmonise public procurement in the SADC in order to open up public procurement to regional competition, some of the obstacles preventing this, and possible solutions are discussed. Reference is made to international instruments such as the United Nations Commission on International Trade Law (UNCITRAL), the Model Law on Public Procurement and the GPA. In particular, the progress made in the Common Market for Eastern and Southern Africa (COMESA) with regard to the harmonisation of public procurement, which was based on the Model Law, will be used to suggest possible solutions to the problem of harmonising public procurement in the SADC.


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