Domestic Effects of Environmental Policies with Transboundary Pollution
AbstractWe model environmental interaction among countries as a policy game where governments in each country use quotas or taxes as strategy variables. The environmental policy has a triple role to play: targeting domestic emissions, providing strategic advantages for domestic firms and targeting imported pollution. Using a multi-sector economic model, we show that, besides the well-known inefficiencies arising at the international level, the environmental policy may lead to purely domestic inefficiencies. JEL classification : F18 ; Q20 ; Q28.
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Bibliographic InfoArticle provided by De Boeck Université in its journal Recherches économiques de Louvain.
Volume (Year): 76 (2010)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm
environmental policy; transboundary pollution; multi-sector model;
Other versions of this item:
- CAVAGNAC Michel & PECHOUX Isabelle, 2007. "Domestic effects of environmental policies with transboundary pollution," LERNA Working Papers 07.07.228, LERNA, University of Toulouse.
- Michel Cavagnac & Isabelle Péchoux, 2010. "Domestic Effects of Environmental Poclicies with Transboundary Pollution," Discussion Papers (REL - Recherches Economiques de Louvain) 2010014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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