Technical Measures, Environmental Protection, and Trade

Abstract

ABSTRACT Technical regulations are increasingly numerous, complex, and often less transparent than traditional price‐based measures. Widely employed to achieve nontrade policy objectives, these measures are frequently adopted for environmental protection purposes. However, the trade effects of environmental measures remain underexplored. Using a unique and original dataset of technical measures notified for environmental reasons, we provide robust evidence that such measures significantly reduce both trade values and volumes. Our analysis further reveals substantial variation in the trade impacts of environmental technical measures across sectors and countries, highlighting notable differences. These findings are critical for assessing whether these measures function as trade barriers and underscore the importance of further research into their trade‐offs and spillover effects. Such research is essential for understanding the broader implications of environmental technical measures on global trade dynamics.

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