Dynamic Games of Environmental Policy in a Global Economy: Taxes versus Quotas
AbstractThe effects of environmental policy on the global environment as an international public good with a stock externality and national welfare are examined in a model with trade in a polluting commodity. The welfare effects of environmental policy, decomposed into terms of trade, abatement cost, and environmental damage effects, induce governments to adopt a strategic use of their policy measures. In the absence of international cooperation on environmental policy, it is demonstrated that the emission tax game brings about larger strategic distortions than the emission quota game. Copyright � 2007 The Author; Journal compilation � 2007 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 15 (2007)
Issue (Month): 3 (08)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
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- Sikdar, Shiva & Lapan, Harvey E., 2008.
"Strategic Environmental Policy Under Free Trade with Transboundary Pollution,"
Staff General Research Papers
12931, Iowa State University, Department of Economics.
- Harvey E. Lapan & Shiva Sikdar, 2011. "Strategic Environmental Policy under Free Trade with Transboundary Pollution," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 1-18, 02.
- Lapan, Harvey E. & Sikdar, Shiva, 2007. "Strategic Environmental Policy Under Free Trade with Transboundary Pollution," Staff General Research Papers 31298, Iowa State University, Department of Economics.
- Lapan, Harvey E. & Sikdar, Shiva, 2010. "Strategic environmental policy under free trade with transboundary pollution," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59160, Australian Agricultural and Resource Economics Society.
- Emilio Calvo & Santiago J. Rubio, 2012. "Dynamic Models of International Environmental Agreements: A Differential Game Approach," Discussion Papers in Economic Behaviour 0112, University of Valencia, ERI-CES.
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