Graduation Year

2014

Abstract

This paper focuses on the relationships between open trade, environmental policies, and greenhouse gas exposures between the United States, Canada, and Mexico. Comparative advantage theory posits that opening up to trade will capitalize on a country's efficiency and increase a country's gross national product. Furthermore, because of less government regulations in underdeveloped countries, it is hypothesized that as GDP increases in Mexico, there could also be a subsequent increase in air pollutants. This study focuses on what determinants might have an effect on C02, NOx, NzO, and CHF3 emissions (the major greenhouse gas emission) in three countries (Canada, Mexico and the United States) between 1980 and 2008. An OLS regression is employed to measure the impact that increases in GDP and political decisions (i.e. NAFTA and the Kyoto Protocol) can have on greenhouse gas emissions. The results indicate that the first implementation of each policy has the largest impact on the environment and economic health of a country.

Disciplines

Economics

Included in

Economics Commons

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