Campus Units

Economics

Document Type

Article

Publication Date

2015

Journal or Book Title

Economics Bulletin

Volume

35

Issue

4

First Page or Article ID Number

2282

Last Page

2287

Abstract

We incorporate endogenous (price-responsive) consumption pollution into a dual trade model to assess welfare effects of coordinated trade and environmental piecemeal reform in a small, open and distorted economy. Pollution is generated by production and consumption. Producers control the level of pollution and face incentives to abate both types of pollution. We identify sufficient conditions for welfare-improving reforms of trade and environmental policies. An additional domestic environmental policy instrument must be imposed on exportables because of their supply response to foreign environmental taxes.

Comments

This article is from Economics Bulletin 35 (2014): 2282.

Language

en

File Format

application/pdf

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