Environmental Protection and Free Trade: IndirectCompetition for Political Inuence

This paper shows that although small or nancially constrained environmentalistgroups may be in a weak position, relative to polluting industries, in the directcompetition for political inuence, they can compete indirectly through changingpublic preferences over environmental quality. However, in a small open economywhere the output price is exogenously determined, the value domestic persuasionfalls and government environmental policies will be determined by direct politicalcompetition...