American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes
American Economic Journal: Economic Policy
(pp. 224–58)
Abstract
We test the hypothesis that governments alter environmental policy in response to trade by studying NAFTA's effects on the formation of environmental policy in the US House of Representatives between 1990 and 2000. We find that reductions in US tariffs decreased political support for environmental legislation. This decrease appears to be due to (i) a reduction in support by incumbent Republican legislators in response to trade-induced changes in the policy preferences of their constituents and (ii) changes in partisan representation in affected districts due to decreased electoral support for pro-NAFTA Democrats following the agreement.Citation
Cherniwchan, Jevan, and Nouri Najjar. 2025. "Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes." American Economic Journal: Economic Policy 17 (2): 224–58. DOI: 10.1257/pol.20230733Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F13 Trade Policy; International Trade Organizations
- F15 Economic Integration
- F18 Trade and Environment
- Q56 Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Q58 Environmental Economics: Government Policy