RT Journal Article
SR Electronic
T1 Revealed Preferences of an International Trade and Environment Institution
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 224
OP 238
DO 10.2307/3654740
VO 80
IS 2
A1 Fernandez, Linda
YR 2004
UL http://le.uwpress.org/content/80/2/224.abstract
AB International cooperation on environmental problems is examined through the factors influencing a North American Free Trade Agreement (NAFTA) institution’s decisions over environmental problems along the U.S.-Mexico border. An econometric study relates the approval by the NAFTA institution of environmental improvement projects to observed attributes of the proposed projects. Results show strong preference for projects solving trans-boundary wastewater pollution and the polluter pays principle. The institution does not prefer projects that generate revenues nor minimize costs. Bi-national grants and loans dominate the funding for approved projects, implying both countries pay. More U.S. projects have been approved than projects from Mexico. (JEL F18)