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The EU effect: does trade with the EU reduce CO 2 emissions in the developing world?

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Abstract

The European Union (EU) is an important destination for developing country exports. Has the EU's commitment to the Kyoto Protocol induced developing countries to reduce their carbon dioxide (CO2) emissions? Our analyses of 136 developing countries from 1981 through 2007 suggests that: developing countries' export dependence on the EU is associated with CO2 emission reductions post-Kyoto in relation to the pre-Kyoto time period; this also holds for SO2, which, while not covered under Kyoto, is linked with CO2 emission levels; this does not hold for PM10, a pollutant which is not covered under Kyoto and is not directly associated with CO2 emissions related to industrial activities; developing countries' export dependence on non-EU developed countries and on the rest of the world is not associated with significant reductions in emissions between pre- and post-Kyoto for these pollutants. In sum, even in the absence of binding regulatory mandates, the EU appears to exert market leverage to project its regulatory preferences abroad.

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While the identity of the EU may have normative and/or other characteristics, it is more importantly a relatively large single market with significant institutional capacity and competing interest groups. Given these central characteristics, the EU may be best understood as a Market Power Europe that (often coercively) externalises its market-related policies and regulations. This externalisation suggests an oft-overlooked way in which the EU pursues effective multilateralism. By scrutinising the EU's identity, official documents and sample case studies, the paper provides a more thorough understanding of what kind of power the EU is, what the EU says as a power and what the EU does as a power.
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This contribution examines the driving factors behind the European Union's activism in global climate politics since the mid‐1990s. Two alternatives are considered: norms and interests. Norms underlying the EU's stance include its belief in multilateralism, sustainable development and the precautionary principle. Interests comprise economic opportunities and the climate change–security nexus. It is argued here that the normative orientation has dominated the EU's ‘leading by example’ strategy in global negotiations. In Copenhagen, it yielded little influence as it was insufficiently geared towards the context of the negotiations. This challenges the notion of ‘normative power’ Europe and makes a review of the Union's external climate policy necessary.
The issue of devising an efficient and equitable global climate change mitigation agreement is examined. While the possibility of catastrophic damages contingent on unmitigated climate change provides cogent reasons for self-interested, large countries to unilaterally mitigate there are practical reasons for them not to do so. A key concern for developed countries is possible carbon leakages. For developing countries, the need to pursue growth objectives can restrict the proclivity to mitigate. Carbon leakage issues can be addressed using border tax adjustments although these raise computational complexity, GATT-rules consistency and equity issues for developing countries. If the efficiency gains from utilising border tax adjustments are to be realised, compensation schemes must address these equity issues. An analysis is provided explicitly addressing the role of China and the United States. Copyright (c) 2010 The Economic Society of Australia.
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This paper presents specification tests that are applicable after estimating a dynamic model from panel data by the generalized method of moments (GMM), and studies the practical performance of these procedures using both generated and real data. Our GMM estimator optimally exploits all the linear moment restrictions that follow from the assumption of no serial correlation in the errors, in an equation which contains individual effects, lagged dependent variables and no strictly exogenous variables. We propose a test of serial correlation based on the GMM residuals and compare this with Sargan tests of over-identifying restrictions and Hausman specification tests.
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Análisis de la política exterior de la Unión Europea y de su paulatina consolidación como un actor político central -a la par que Estados Unidos- en materia de relaciones internacionales. Se aborda el papel fundamental de mediador que está desempeñando en lo que toca a las relaciones norte-sur y entre los países mediterráneos y la Europa central y oriental, así como cuestiones de identidad de la unión y defensa del continente.
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Many panel data sets encountered in macroeconomics, international economics, regional science, and finance are characterized by cross-sectional or "spatial" dependence. Standard techniques that fail to account for this dependence will result in inconsistently estimated standard errors. In this paper we present conditions under which a simple extension of common nonparametric covariance matrix estimation techniques yields standard error estimates that are robust to very general forms of spatial and temporal dependence as the time dimension becomes large. We illustrate the relevance of this approach using Monte Carlo simulations and a number of empirical examples. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog
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The European Union has played a leading role in pushing for the establishment, ratification, and meaningful implementation of the Kyoto Protocol to the United Nations Framework Convention on Climate Change, although it still has significant efforts to make to achieve its target of an 8 percent cut of greenhouse gas by 2008-2012 relative to the 1990 level. This article explores the political factors behind continued EU leadership in climate change. It argues that a few individual states (including Sweden, the Netherlands, Denmark, Germany, and the UK) played an essential role in establishing the EU's agenda in this domain. However, the decentralized governance structure of the EU has also encouraged a process of mutual reinforcement, whereby individual states, the European Commission, and the European Parliament are competing for leadership. (c) 2007 by the Massachusetts Institute of Technology.
Competition and cooperation in environmental policy: individual and interaction effects Still not pushing back why the European Union is not balancing the United States
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Holzinger, K. and Knill, C., 2004. Competition and cooperation in environmental policy: individual and interaction effects. Journal of Public Policy, 24 (1), 25-47. doi:10.1017/S0143814X04000029 Howorth, J. and Menon, A., 2009. Still not pushing back why the European Union is not balancing the United States. Journal of Conflict Resolution, 53 (5), 727-744. doi:10.1177/0022002709339362
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The diffusion of policy diffusion research in political science Economic growth and the environment
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Graham, E.R., Shipan, C.R., and Volden, C., 2013. The diffusion of policy diffusion research in political science. British Journal of Political Science, 43, 673-701. doi:10.1017/S0007123412000415 Grossman, G.M., and Krueger, A.B., 1995. Economic growth and the environment. The Quarterly Journal of Economics, 110 (2), 353-377.
Polity IV project: political regime characteristics and transitions
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