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The aim is to assess the relationship between environmental and trade policies, focusing on gaps and connections in literature.

Political Economy of Environmental Policy Under Trade

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The aim is to assess the relationship between environmental and trade policies, focusing on gaps and connections in literature.
Developed a unified framework incorporating environmental externalities and political competition.
Analyzed model interactions between lobbying incentives and environmental agreements.
Highlighted the effects of abatement and terms-of-trade on equilibrium outcomes.
Cooperative policies are more welfare-improving than noncooperative policies due to the internalization of emission leakage.
Lobbying pressures from producers and consumers are countervailing, influenced by government weightings on groups.
The nature of environmental externalities and agreements shapes the effectiveness of the policies.

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This review shows how trade interacts with environmental policies, affecting lobbying incentives and outcomes in economies.

Akhundjanov et al. (2026) studied this question.

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