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The Role of TTIP on the Environment
Author(s) -
Qirjo Dhimitri,
Pascalau Razvan
Publication year - 2019
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/soej.12334
Subject(s) - transatlantic trade and investment partnership , factor endowment , pollution haven hypothesis , per capita , haven , economics , investment (military) , per capita income , international economics , international trade , population , free trade , macroeconomics , foreign direct investment , political science , comparative advantage , demography , mathematics , combinatorics , sociology , politics , law
The current study empirically investigates and shows that, on average, the possible implementation of the Transatlantic Trade and Investment Partnership (TTIP) would generally help in the fight against global warming. In particular, the study finds that a 1% increase in the bilateral trade between the United States and the typical EU member would reduce annual per capita emissions of CO 2 and GHGs in the typical TTIP member by about 2.7% and 2.4%, respectively. However, results also show that TTIP may increase annual per capita emissions of GHGs in the United States by about 2.5% per year. These results stand because the factor endowment hypothesis and the pollution haven hypothesis based on population density variations appear to dominate the pollution haven hypothesis based on national income differences.