Transatlantic Trade and Investment Partnership, and Environmental Consequences

Qirjo, Dhimitri; Pascalau, Razvan; Christopherson, Robert

doi:2021.36.4.549

The Journal of Economic Integration 2021 December;36(4) :549-606.
DOI: https://doi.org/10.11130/jei.2021.36.4.549

Transatlantic Trade and Investment Partnership, and Environmental Consequences

Dhimitri Qirjo, ¹ Razvan Pascalau, ¹ Robert Christopherson ¹ and

¹SUNY Plattsburgh, USA

Corresponding Author: Dhimitri Qirjo ,Email: dqirj001@fiu.edu

ABSTRACT

We empirically investigate the effect of the Transatlantic Trade and Investment Partnership on the per capita emissions of eight air pollutants and municipal waste. By introducing the same explanatory variables and applying the same empirical strategy and methodologies as in Qirjo and Pascalau (2019), we provide robust evidence suggesting that the implementation of the partnership could be beneficial to the environment because it may reduce per capita emissions of CH₄, hydrofluorocarbons/ perfluorinated chemicals/ SF₆, N₂O, NH₃, and SF₆ for a typical partnership member. This result is based on statistically significant evidence showing that, on average, the pollution haven motive based on national per capita income variations is dominated by the factor endowment argument based on the Heckscher-Ohlin trade theory and the pollution haven motive originating from an inverse measurement of national population density differences. However, we also report statistically significant evidence that the implementation of the partnership could denigrate the environment by increasing per capita emissions of SO₂ and municipal waste.

JEL Classification

F18: Trade and Environment
F53: International Agreements and Observance; International Organizations
F64: Environment

Keywords: Free Trade | Environmental Economics | TTIP | Transatlantic Trade and Investment Partnership