Environmental Policy in an Integrated World Economy

Fondazione Eni Enrico Mattei Working Paper No. 28.98

101 Pages Posted: 17 Sep 1998

See all articles by Gunther G. Schulze

Gunther G. Schulze

University of Freiburg - Department of Economics

Heinrich W. Ursprung

University of Konstanz; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: April 1998

Abstract

This paper critically assesses the literature on the relationship between economic integration and the environment. In particular, we investigate how trade liberalization and capital market integration affect environmental policy and thus environmental quality. Conversely, we also study how environmental policy can be used to serve non-environmental (trade policy) goals. The interaction between economic integration and environmental policy is not only approached from a traditional social welfare maximizing perspective, but ? as a novelty ? also includes the emerging political-economic literature on this set of issues. This altered perspective leads us to substantially different results. Moreover, we present the substantial empirical evidence for both perspectives. This allows us to put the theoretical findings in perspective.

JEL Classification: F10, F20, Q20

Suggested Citation

Schulze, Gunther G. and Ursprung, Heinrich, Environmental Policy in an Integrated World Economy (April 1998). Fondazione Eni Enrico Mattei Working Paper No. 28.98, Available at SSRN: https://ssrn.com/abstract=128348 or http://dx.doi.org/10.2139/ssrn.128348

Gunther G. Schulze (Contact Author)

University of Freiburg - Department of Economics ( email )

Platz der Alten Synagoge
D-79085 Freiburg
Germany

HOME PAGE: http://www.vwl.uni-freiburg.de/fakultaet/sopo/index.html

Heinrich Ursprung

University of Konstanz ( email )

Konstanz, D-78457
Germany
+49 7531 88 3713 (Phone)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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