The Role of TTIP on the Environment

The current study empirically investigates and shows that on average, the possible implementation of the Transatlantic Trade and Investment Partnership (TTIP) would generally help in the fight against global warming. In particular, the study finds that a one percent increase in the bilateral trade between the U.S. and the typical EU member would reduce annual per capita emissions of CO2 and GHGs in the typical TTIP member by about 2.7 and 2.4 percent, respectively. However, results also show that TTIP may increase annual per capita emissions of GHGs in the U.S. by about 2.5 percent per year. These results stand because the factor endowment hypothesis (FEH) and the pollution haven hypothesis based on population density variations (PHH2) appear to dominate the pollution haven hypothesis based on national income differences (PHH1)