Trade liberalization can spur environmental degradation. Concerns over these adverse impacts have led to a debate over the need for environmental provisions in regional trade agreements (RTAs), however the effectiveness of such provisions is unknown. This paper provides new causal evidence that environmental provisions are effective in limiting deforestation following the entry into force of RTAs. It exploits high-resolution, satellite-derived estimates of deforestation and identify the content of RTAs using a new dataset with detailed information on individual provisions. Accounting for the potential endogeneity of environmental provisions in RTAs, the paper finds that the inclusion of specific provisions aimed at protecting forests and/or biodiversity entirely offsets the net increases in forest loss observed in similar RTAs without such provisions. The inclusion of these provisions limits agricultural land expansion, but does not completely offset increases in total agricultural production. The effects are concentrated in tropical, developing countries with greater biodiversity.
Information
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Auteur
Abman,Ryan Michael, Lundberg,Clark Christopher, Ruta,Michele
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Date du document
2021/03/25
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Type de document
Document de travail de recherche sur les politiques
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Numéro du rapport
WPS9601
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Volume
1
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Total Volume(s)
1
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Pays
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Région
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Date de publication
2021/03/25
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Disclosure Status
Disclosed
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Titre du rapport
The Effectiveness of Environmental Provisions in Regional Trade Agreements
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Mots clé
environmental provision; forest loss; trade agreement; sustainable use of biological diversity; development research group; regional trade agreement; impact of trade liberalization; trade and the environment; conservation of natural resources; global greenhouse gas emission; food and agricultural; sustainable management of forest; dispute settlement mechanism
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