Research |
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Working Papers #10
| Title: | Is the road to regional integration paved with pollution convergence? The case of the Euro-Med Agreements |
| Authors: | L. Baghdadi (University of 7th November at Carthage, Tunisia and Tunis University), I. Martínez-Zarzoso (Universitat Jaume I, University of Goettigen, Germany), C. Suárez (Universitat Jaume I), H. Zitouna (FSEGN and LIM-MES Polytechnic School of Tunisia, University of Carthage, Tunisia). |
| Date: | November 2011 |
| Keywords: | Pollution haven hypothesis, convergence, CO2 emissions, Euromed Agreements, difference-in-difference |
| JEL codes: | F18; O13; L60; Q43 |
Abstract: | |
| This paper evaluates the impact of free trade agreements (FTAs) on carbon dioxide emissions convergence for a cross-section of 182 countries over the period 1980 to 2008, paying particular attention to Mediterranean and European Union countries. To overcome the endogeneity problem of the FTA variable, a propensity score matching approach is first used to match country pairs. Next a model that decomposes relative CO2 emissions into scale, composition and technique effects is estimated for the whole panel and for the matched sample using difference-in-difference techniques. The main results indicate that CO2 emissions of pair of countries that belong to an FTA tend to converge, and they converge at a higher rate for more advanced integration agreements. In particular, we find that emissions converge more rapidly for NAFTA and EU-27 countries than for Euro-Med countries. This paper presents research from a CREMed Research Project. | |
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