Transboundary Pollution, Trade Liberalization, and Environmental Taxes

Research, Preprint English OPEN
Baksi, S.; Ray Chaudhuri, A.;
(2008)
  • 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
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