Essays on Political Economy in Trade and Environment

Essays on Political Economy in Trade and Environment

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The second essay questions how one country's decision to liberalize trade affects a political economic structure that determines environmental policy in other country. By constructing a political economy model with endogenous lobby formation, it shows that unilateral tariff reductions (UTRs) by a large country importing a dirty good will generate an industry lobby that demands a lax environmental regulation in a small country exporting that good. Then, it shows that for a pre-existing lobby, the UTRs cause the formation of a lobby group that opposes initially distorted environmental policy in the small country. Numerical simulations show that the UTRs first cause the formation of industry lobby groups and further reductions of trade barriers will generate an environmental lobby in the small country.The second essay questions how one countrya#39;s decision to liberalize trade affects a political economic structure that determines environmental policy in other country.


Title:Essays on Political Economy in Trade and Environment
Author: Shinya Kawahara
Publisher:ProQuest - 2006
ISBN-13:

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