International Trade and Pollution in Shared Resources: A Study of International Rivers

This paper examines whether trade relationships facilitate resolution of international environmental spillovers. Using data from the UN's Global Environmental Monitoring System (GEMS) on water quality in international rivers, I examine the influence of bilateral trade on pollution in rivers that cross international borders. There is little evidence of lower water pollution in rivers shared between countries with more extensive trade, with a small effect possible only outside the European Union.