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Journal article
Exposure to international trade lowers green voting and worsens environmental attitudes
Published 14/09/2023
Nature Climate Change
From a political perspective, advancing green agendas in democracies requires obtaining electoral support for parties and candidates proposing green platforms. It is therefore crucial to understand the factors driving green voting and attitudes. Yet, limited research has explored the role of economic determinants in this context. In this study we show that globalization, through the distributional consequences of import competition, is an important determinant of support for parties proposing green platforms. Our analysis covers the United States and 15 countries of Western Europe, over the period 2000–2019, with trade exposure measured at the level of subnational geographic areas. We find that higher trade exposure leads to lower support for more environmentalist parties and to more sceptical attitudes about climate change. Our empirical findings are in line with the theoretical channel of deprioritization of environmental concerns, as trade-induced economic distress raises the salience of economic issues.
Journal article
The short and long-run effects of international environmental agreements on trade
Published 11/2022
Journal of International Economics, 139, 103685
Does the ratification of an international environmental agreement (IEA) reduce a country's competitiveness on world markets? In this paper, we take a gravity regression approach to answering this question by using industry-level bilateral trade data and employing time-varying country fixed effects to control for the endogeneity of treaty participation. Based on sample of >200 countries and over 40 years, we find that ratifying an IEA results in a significant compositional shift towards exporting cleaner and importing dirtier manufacturing goods. In addition, we find significant lagged effects to ratifying the Kyoto Protocol as the compositional shift towards exporting cleaner goods becomes even stronger in the long run. However, we find little evidence that the ratification of IEAs contributed to an overall decline in manufacturing exports as we uncover only small and insignificant effects of IEAs ratification on the median-polluting manufacturing industry.
Journal article
Global value chains and the removal of trade protection
Published 11/2021
European Economic Review
This paper examines how trade protection is affected by changes in the value-added content of production arising through global value chains (GVCs). Exploiting a new set of WTO rules adopted in 1995 that impose an exogenously-timed requirement for countries to re-evaluate their previously-imposed trade protection, we adopt an instrumental variables strategy and identify the causal effect of GVC integration on the likelihood that a trade barrier is removed. Using a newly constructed dataset of protection removal decisions involving 10 countries, 41 trading partners, and 18 industries over 1995–2013, we find that bilateral industry-specific domestic value-added growth in foreign production significantly raises the probability of removing a duty. The results are not limited to imports from China but are only found for the protection decisions of high-income countries. Back-of-the-envelope calculations indicate that rapid GVC growth in the 2000s freed 15% of the trade flows subject to the most common temporary restrictions (i.e. antidumping) applied by high-income countries in 2007.