Regulatory Takings and Environmental Regulation in NAFTA's Chapter 11

NAFTA's investment treaty has led to several expropriation compensation claims from investors hurt by new environmental regulations. Expropriation clauses in international treaties solve post-investment moral hazard problems such as hold-ups. However, these clauses can interact with National Treatment clauses in a manner that hinders investment. A police powers carve-out from the definition of expropriation can be Pareto-improving and can increase the level of foreign investment.


Issue Date:
2006
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/7195
Total Pages:
36
JEL Codes:
K3; Q58; F21
Series Statement:
CUDARE Working Paper
1014




 Record created 2017-04-01, last modified 2017-08-23

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