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.
Language
en
File Format
application/pdf
Recommended Citation
Metcalfe, Mark R. and Beghin, John C., "Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes" (2015). Economics Publications. 55.
https://lib.dr.iastate.edu/econ_las_pubs/55
Comments
This article is from Economics Bulletin 35 (2014): 2282.