Boosting trade in environmental goods. Evidence from provisions in free trade agreements

Environmentally friendly goods and techniques such are essential for the transition to a greener economy. Trade policy can help support the global diffusion of these goods and technologies by removing barriers to trade, lowering the cost of the green transition for consumers, firms, and governments....

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Main Authors: Fredrik Gisselman, Erik Merkus, Nils Norell
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:World Development Sustainability
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Online Access:http://www.sciencedirect.com/science/article/pii/S2772655X24000739
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author Fredrik Gisselman
Erik Merkus
Nils Norell
author_facet Fredrik Gisselman
Erik Merkus
Nils Norell
author_sort Fredrik Gisselman
collection DOAJ
description Environmentally friendly goods and techniques such are essential for the transition to a greener economy. Trade policy can help support the global diffusion of these goods and technologies by removing barriers to trade, lowering the cost of the green transition for consumers, firms, and governments. This paper investigates the effectiveness of trade agreements that specifically aim to boost and facilitate trade in these environmental goods. Using a gravity model, we find that these trade agreements are not associated with increased trade in environmental goods. Trade flows between countries that have a free trade agreement with so-called environmental goods provisions are not higher than between countries without such an agreement.
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publishDate 2025-06-01
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spelling doaj-art-292850fe1f3a4eb9a73f79cac30637692025-08-20T02:35:57ZengElsevierWorld Development Sustainability2772-655X2025-06-01610019510.1016/j.wds.2024.100195Boosting trade in environmental goods. Evidence from provisions in free trade agreementsFredrik Gisselman0Erik Merkus1Nils Norell2Kommerskollegium, National Board of Trade, SwedenKommerskollegium, National Board of Trade, Sweden; Misum, Mistra Centre for Sustainable Markets, Stockholm School of Economics, Sweden; Corresponding author at: Kommerskollegium, National Board of Trade, Sweden.Kommerskollegium, National Board of Trade, SwedenEnvironmentally friendly goods and techniques such are essential for the transition to a greener economy. Trade policy can help support the global diffusion of these goods and technologies by removing barriers to trade, lowering the cost of the green transition for consumers, firms, and governments. This paper investigates the effectiveness of trade agreements that specifically aim to boost and facilitate trade in these environmental goods. Using a gravity model, we find that these trade agreements are not associated with increased trade in environmental goods. Trade flows between countries that have a free trade agreement with so-called environmental goods provisions are not higher than between countries without such an agreement.http://www.sciencedirect.com/science/article/pii/S2772655X24000739International TradeEnvironmental GoodsFree Trade AgreementsGravity ModelClimate Goods
spellingShingle Fredrik Gisselman
Erik Merkus
Nils Norell
Boosting trade in environmental goods. Evidence from provisions in free trade agreements
World Development Sustainability
International Trade
Environmental Goods
Free Trade Agreements
Gravity Model
Climate Goods
title Boosting trade in environmental goods. Evidence from provisions in free trade agreements
title_full Boosting trade in environmental goods. Evidence from provisions in free trade agreements
title_fullStr Boosting trade in environmental goods. Evidence from provisions in free trade agreements
title_full_unstemmed Boosting trade in environmental goods. Evidence from provisions in free trade agreements
title_short Boosting trade in environmental goods. Evidence from provisions in free trade agreements
title_sort boosting trade in environmental goods evidence from provisions in free trade agreements
topic International Trade
Environmental Goods
Free Trade Agreements
Gravity Model
Climate Goods
url http://www.sciencedirect.com/science/article/pii/S2772655X24000739
work_keys_str_mv AT fredrikgisselman boostingtradeinenvironmentalgoodsevidencefromprovisionsinfreetradeagreements
AT erikmerkus boostingtradeinenvironmentalgoodsevidencefromprovisionsinfreetradeagreements
AT nilsnorell boostingtradeinenvironmentalgoodsevidencefromprovisionsinfreetradeagreements