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By  and Paola Conconi and Paola Conconi


We employ a common agency model to study the in‡uence of green and producer lobbies on the determination of trade and environmental policies. We focus on two large countries that are linked by trade ‡ows and transboundary pollution. We show that the nature of the relationship between the lobbies and the relative e¢ciency of unilateral and cooperative policy outcomes depend crucially whether governments use one or both policy instruments, whether they act in a unilateral or cooperative manner, and the size of the ‘emission leakages ’ and the associated transboundary spillovers

Topics: Transboundary Pollution, International Trade, Interest Groups. JEL Classi…cation, D72, F13, Q20, Q28
Year: 2001
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