Arnoldshain Seminar XV
“The EU and Latin America Facing Globalization”
September 4 – 6, 2017
Vienna


   
Nunez-Rocha, Thais, University of Orleans, and Camelia Turcu, Are we regulating the cause or the consequence? Trade in natural resources.
Massive extraction of natural resources for export purposes has a negative impact to the environment, environmental regulations are used in order to tackle this impact, nations are regulating the cause and the consequences of this impact. In this paper we show that indirect regulations have more impact in reducing natural resources exports then direct regulations, this effect is more important in non-renewal resources then in renewal, but is also sensible to the dependence of the resource. We use natural resources exports flow data joint with the national and international countries' environmental laws by subject on a gravity model after controlling for endogeneity with an instrumental variable. We rise the debate about a trade-off regulating the cause or the consequence.