Globalisation and the Environment

Lionel Fontagné: Lionel.Fontagne @ univ-paris1.fr (Lionel.Fontagne @ univ-paris1.fr)

This course discusses how globalization affects the environment. A first part reviews the theoretical and empirical direct and indirect links between globalization and the environment and ask whether globalization is necessarily bad for the environment. A second part analyzes the possible conflicts between environmental protection objectives and trade liberalization efforts (WTO, RTAs). A last part discusses how the necessary conditions for an ambitious emissions reduction policy and how trade policies can help to address climate change.

Part 1: Is international trade bad for the environment?

Part 2: Does economic globalization conflict with environmental regulation?

Part 3: How can trade policies and climate change issues be linked?

References

Antweiler W., B. Copeland and S. Taylor (2001): “Is Free Trade Good for the

Environment?”, American Economic Review, vol. 91, no 4, pp. 877-908.

Cristea A., D. Hummels, L. Puzzelo and M. Avetisyan (2013): “Trade and the Greenhouse

Gas Emissions from International Freight Transport”, Journal of Environmental Economics

and Management, no 65, pp. 153-173.

Fontagné L. and J. Fouré (2017): “Changement climatique et commerce: quelques

simulations de politique économique”, Focus du CAE, no 15, January.

Frankel J.A. and A.K. Rose (2005): “Is Trade Good or Bad for the Environment? Sorting out

the Causality”, Review of Economics and Statistics, vol. 87, no 1, pp. 85-91.

Nordhaus W. (2015): “Climate Clubs: Overcoming Free-Riding in International Climate

Policy”, American Economic Review, vol. 105, no 4, pp. 1339-1370.

Shapiro J.S. (2016): “Trade Costs, CO2 and the Environment”, American Economic Journal:

Economic Policy, vol. 8, no 4, pp. 220-254.