Does Trade Promote Environmental Coordination?: Pollution in International Rivers

Contributions to Economic Analysis and Policy, Vol. 3, No. 2, 2004

Posted: 22 Jun 2004

See all articles by Hilary Sigman

Hilary Sigman

Rutgers University - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

This paper examines whether trade relationships facilitate resolution of international environmental spillovers. Trade might promote cooperation by creating opportunities for implicit side payments, allowing linkage between environmental and trade concessions, providing direct leverage over other countries' production, or instilling a perception of shared goals. Using data from the UN's Global Environmental Monitoring System (GEMS) on water quality in international rivers, the paper examines the influence of bilateral trade on pollution in rivers that cross international borders. In equations with country fixed effects, the paper finds evidence of lower water pollution in rivers shared between countries with more extensive trade.

Keywords: Environment, Transboundary Pollution, Water Quality

JEL Classification: Q28, F18

Suggested Citation

Sigman, Hilary A., Does Trade Promote Environmental Coordination?: Pollution in International Rivers. Contributions to Economic Analysis and Policy, Vol. 3, No. 2, 2004, Available at SSRN: https://ssrn.com/abstract=557238

Hilary A. Sigman (Contact Author)

Rutgers University - Department of Economics ( email )

75 Hamilton Street
New Brunswick, NJ 08901
United States

HOME PAGE: http://econweb.rutgers.edu/sigman

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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