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Trade in Fuels and Environmental Regulation: A Two-Sided Story

  • Thais Nunez-RochaEmail author
  • Camelia Turcu
Article
  • 5 Downloads

Abstract

In this paper, we show how environmental regulation affects trade in fuels. The regulation is assessed along two dimensions: one tackling the extraction and another one dealing with the use of fuels. Using a gravity model with 141 countries for the period 1998–2015, we show that regulations on the extraction of fuels have no impact on trade compared to those related to the use of these non-renewable resources. Specifically, we find that introducing Energy laws slows down fuels trade at the world level and that if importers get involved in more international environmental treaties, they will import less fuels.

Keywords

Fuels Trade Environmental regulation 

JEL Classification

F18 F64 Q23 Q35 

Notes

Acknowledgements

We are grateful to the Editor, Paul Wachtel, and to three anonymous referees for very helpful comments and suggestions that helped us to improve the previous version of this article. We would like to thank participants at the Labex Voltaire Workshop “Economics of Mineral Resources” (March 2017) for their useful remarks. We are also grateful to Sophie Brana, Alberto Bagnai, Inmaculada Martinez-Zarzoso, Isabelle Rabaud, Francesco Ricci, Daniel Mirza, Thomas Sterner, Rick Van Der Ploeg, and to the participants at the INFER, ETSG, LEO conferences and seminars for their insightful comments. Special thanks to Andreea Draghici for excellent research assistance. All remaining errors are ours. This research benefits from the support of the Labex Voltaire.

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Copyright information

© Association for Comparative Economic Studies 2018

Authors and Affiliations

  1. 1.LEO CNRS FRE 2014University of OrleansOrléansFrance
  2. 2.Labex VOLTAIRE (ANR-10- LABX-100-01)OrléansFrance
  3. 3.LEO CNRS FRE 2014 and INFERUniversity of OrleansOrléansFrance

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