Transboundary Pollution, Trade Liberalization, and Environmental Taxes

Research, Preprint English OPEN
Baksi, S.; Ray Chaudhuri, A.;
  • Publisher: Microeconomics
  • Subject: H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies | Pollution tax | D43 - Oligopoly and Other Forms of Market Imperfection | Transboundary pollution;Strategic trade;Bilateral tariff reduction;Pollution tax | Transboundary pollution; Strategic trade; Bilateral tariff reduction; Pollution tax | Transboundary pollution | F18 - Trade and Environment | Strategic trade | Bilateral tariff reduction | Q58 - Government Policy
    • jel: jel:D43 | jel:Q58 | jel:H23 | jel:F18

In a bilateral trade framework, we examine the impact of tari¤ reduction on the op- timal pollution tax and social welfare when pollution is transboundary. Strategic considerations lead countries to distort their pollution tax in the non-cooperative equilibrium. Trade l... View more
  • References (11)
    11 references, page 1 of 2

    Antweiler, W., B. Copeland, and M.S. Taylor (2001), “Is Free Trade Good for the Environment”, American Economic Review, 91, 877-908.

    Barrett, S. (1994), “Strategic Environmental Policy and International Trade”, Journal of Public Economics, 54, 325-338.

    Benarroch, M. and H. Thille (2001), “Transboundary Pollution and the Gains from Trade”, Journal of International Economics, 55, 139-159.

    Burguet, R. and J. Sempere (2003), “Trade Liberalization, Environmental Policy, and Welfare”, Journal of Environmental Economics and Management, 46, 25-37.

    Copeland, B. and M.S. Taylor (1999), “Trade, Spatial Separation, and the Environment”, Journal of International Economics, 47, 137-168.

    Copeland, B. and M.S. Taylor (2003), Trade and the Environment: Theory and Evidence, Princeton: Princeton University Press.

    Ederington, J. and J. Minier (2003), “Is Environmental Policy a Secondary Trade Barrier? An Empirical Analysis”, Canadian Journal of Economics, 36(1), 137-154.

    Kennedy, P. (1994a), “Equilibrium Pollution Taxes in Open Economies with Imperfect Competition”, Journal of Environmental Economics and Management, 27, 49-63.

    Kennedy, P. (1994b), “Environmental Policy and Trade Liberalization under Imperfect Competition”, in E. van Ierland (ed.) International Environmental Economics, Elsevier, 195-212.

    Krutilla, K. (1991), “Environmental Regulation in an Open Economy”, Journal of Environmental Economics and Management, 20, 127-142.

  • Metrics
Share - Bookmark