Are There Downsides to a Green Economy? The Trade, Investment and Competitiveness Implications of Unilateral Green Economic Pursuit

Abstract

In response to concerns voiced over the trade and competitiveness impact of a range of measures governments might employ in pursuit of the ‘green economy’, this analysis finds the majority domestically focused, with no significant impact on imports or exports, some with potentially positive impacts for foreign exporters and others, while not inherently negative, with possible troubling aspects dependent on their design. A “clutch of measures” do have troubling impacts but are actually covered by WTO disciplines, while only a few could be problematic and are not adequately covered. Interestingly, the author notes that a large number of the measures analyzed do not fit the traditional mold of pitting developed against developing countries.