{
  "title": "Trade Integration and Political Turbulence: Environmental Policy Consequences",
  "publication": "IMF Working Papers, October 1, 2001",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373",
  "overlayPath": "/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/index.md",
  "summary": "This paper seeks to contribute to the unresolved issue of the effect of economic integration on environmental policy. In particular, we discuss the joint impact of trade openness and political uncertainty.",
  "sections": [
    {
      "heading": "Summary and theoretical framework",
      "content": "- Research question: effect of economic integration on environmental policy, with attention to joint impact of trade openness and political uncertainty.\n- Core theoretical predictions:\n  - \"The effect of trade integreation on the environment is conditional on the degree of political uncertainty.\"\n  - \"Trade integration raises the stringency of environmental policies, but the effect is reduced when the degree of political uncertainty is great.\"\n  - \"Political uncertainty has a positive effect on environmental policy as it reduces lobbying efforts.\"\n- Model features and terminology preserved from source: trade openness, political uncertainty, lobbying, lobby group, incumbent government, government turnover, utility function, policy choice, producer lobby."
    },
    {
      "heading": "Empirical approach and findings",
      "content": "- Data: \"a unique data set of primarily developing countries.\"\n- Main empirical result: \"The empirical findings support the theory and are robust under alterntive specifications.\"\n- Robustness: findings remain under alternative specifications (as stated in source)."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Trade liberalization tends to increase environmental-policy stringency, but:\n  - The strengthening effect of trade on environmental policy is attenuated when political uncertainty is high.\n  - Political instability can reduce lobbying pressure, which may paradoxically improve environmental policy outcomes.\n- Relevant policy considerations:\n  - Account for political uncertainty when assessing environmental impacts of trade integration.\n  - Consider interactions between trade policy, political stability, and domestic lobbying dynamics when designing environmental regulations.\n\n---\n\n Content in this bundle\n\n- 125935\n  - 125935 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 125935 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/bundle-manifest.json)",
    "Authors: Muthukumara Mani, Per G. Fredriksson",
    "Published: October 1, 2001",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451856965.001",
    "Research question: effect of economic integration on environmental policy, with attention to joint impact of trade openness and political uncertainty.",
    "Core theoretical predictions:",
    "Model features and terminology preserved from source: trade openness, political uncertainty, lobbying, lobby group, incumbent government, government turnover, utility function, policy choice, producer lobby.",
    "Data: \"a unique data set of primarily developing countries.\"",
    "Main empirical result: \"The empirical findings support the theory and are robust under alterntive specifications.\"",
    "Robustness: findings remain under alternative specifications (as stated in source).",
    "Trade liberalization tends to increase environmental-policy stringency, but:",
    "Relevant policy considerations:",
    "**125935**"
  ],
  "related": [
    {
      "title": "125935",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2001/_wp01150.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2001/_wp01150.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2001/_wp01150.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/index.md",
    "json": "/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/30/trade-integration-and-political-turbulence-environmental-policy-consequences-15373/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T08:02:58.553Z"
}