Climate Change, Green Paradox Models and International Trade Law

This chapter addresses a novel and unique danger to the functioning of international trade laws, that of ‘green paradoxes’. As such, it provides an introduction to the literature on green paradox models, provides a structural list of areas of nexus between those models and international trade laws, and suggests areas of future research. As first argued by Hans-Werner Sinn, certain regulatory elements of international climate change conventions have the potential to provide economic incentives that could, under certain conditions, lead to increases in GHG emissions and thus worsen the likelihood of adverse anthropogenic climate change. Thus the moniker of ‘green paradoxes’ i.e. ‘green policy’ environmental laws could worsen climate change conditions. The consideration of green paradox models for environmental law researchers is compounded by the additional requirements of international trade laws and conventions. In an international market, global trade and global emissions are increasingly interconnected. This chapter introduces the background and central concepts of green paradox models to a broader audience of international trade law specialists. It provides a framework of causes and potential mitigation strategies with which international trade law strategies could be coordinated with international environmental laws to allow for future green policy coordination.