TTIP and Environmental Consequences

Abstract

This paper empirically investigates the impact of the Transatlantic Trade and Investment Partnership (TTIP) on per capita emissions of eight air pollutants and municipal waste. We employ the same explanatory variables and apply the same empirical strategy and methodologies as in (Qirjo and Pascalau, 2019b). We provide robust evidence suggesting that the implementation of TTIP could be beneficial to the environment because it may reduce per capita emissions of NO2 and HFCs/PFCs/SF6 for a typical TTIP member. This result is based on statistically significant evidence showing that, on average, the Pollution Haven motive based on national per capita income variations is dominated by the Factor Endowment Argument based on the Heckscher-Ohlin trade theory and the Pollution Haven motive originating from an inverse measurement of national population density differences. However, we also report generally statistically significant evidence implying that the implementation of TTIP could denigrate the environment as it may increase per capita emissions of SO2, SOx, NOx, SF6, and NH3. These findings are consistent with results from game theoretical approaches that analyze the role of the strategic trade policies on the environment.