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Green and Producer Lobbies: Enemies or Allies?

Paola Conconi

CSGR Working Paper No. 78/01

July 2001



We employ a common agency model to study the in‡uence of green and producer lobbies on

the determination of trade and environmental policies. We focus on two large countries that

are linked by trade ‡ows and transboundary pollution. We show that the nature of the

relationship between the lobbies and the relative e¢ciency of unilateral and cooperative

policy outcomes depend crucially whether governments use one or both policy instruments,

whether they act in a unilateral or cooperative manner, and the size of the ‘emission

leakages’ and the associated transboundary spillovers.



KEYWORDS: Transboundary Pollution, International Trade, Interest Groups.

JEL Classi…cation: D72, F13, Q20, Q28.



Address for correspondence:

Paola Conconi

Department of Economics

University of Warwick

Coventry, CV4 7AL, United Kingdom.

Tel: +44 (0)24 7657 2857.

Fax: +44 (0)24 7652 3032.