Open Trade Policies: Filthy Fog of the Future?

Submission Type

Event

Expected Graduation Date

2014

Location

Room E104, Center for Natural Sciences, Illinois Wesleyan University

Start Date

4-12-2014 11:00 AM

End Date

4-12-2014 12:00 PM

Disciplines

Economics

Abstract

This paper focuses on the relationships between open trade, environmental policies, and greenhouse gas exposures between the United States, Canada, and Mexico. Trade theory posits that opening trade will increase a country’s gross national product. Furthermore, because of less government regulations in underdeveloped countries, it is predicted that for every increase in GDP in Mexico, there could also be an increase in air pollutants. This study focuses on CO2, NOx, N20, and CF3 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 emission. The results indicate that the first implementation of each policy has the largest impact on the environment and economic health of each country.

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Apr 12th, 11:00 AM Apr 12th, 12:00 PM

Open Trade Policies: Filthy Fog of the Future?

Room E104, Center for Natural Sciences, Illinois Wesleyan University

This paper focuses on the relationships between open trade, environmental policies, and greenhouse gas exposures between the United States, Canada, and Mexico. Trade theory posits that opening trade will increase a country’s gross national product. Furthermore, because of less government regulations in underdeveloped countries, it is predicted that for every increase in GDP in Mexico, there could also be an increase in air pollutants. This study focuses on CO2, NOx, N20, and CF3 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 emission. The results indicate that the first implementation of each policy has the largest impact on the environment and economic health of each country.