Preferential trade agreements: an effective policy tool in climate change governance?

Abstract

This dissertation explores the nexus between environmental provisions in Preferential Trade Agreements (PTAs) and greenhouse gas emissions. It aims to shed some light on the inconclusive debate of issue linkage in PTAs as a policy instrument in climate change. Using a mixed-method approach, the study examines (1) whether environmental provisions in PTAs lead to a reduction in greenhouse gas emissions of trading partners, and (2) how the design and legal nature of climate provisions influence their effectiveness. The empirical analysis is conducted using data for 184 countries over a time frame from 1990-2019. A case study on the US-Peru Trade Promotion Agreement explores the mechanisms through which PTAs take effect. The study finds that countries which include numerous environmental provisions in PTAs will tend to reduce per capita GHG emissions compared to those without environmental provisions. Provisions explicitly targeted at climate change appear especially effective. The study adds new findings to the yet small body of literature by identifying long-term effects on trading partners' emissions. It finds PTAs to be an effective tool in climate governance due to their enforceability. They can take effect through changes in domestic law and through fostering civil society activity.