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Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention

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Author Info

  • John Beghin
  • David Roland-Holst
  • Dominique van der Mensbrugghe

Abstract

The authors demonstrate how coordinated trade and environmental policy can achieve efficiency and pollution mitigation gains superior to those obtained without such coordination. They show how trade and environment linkages give rise to complex second-best policy issues and derive optimal interventions and sufficient conditions for welfare-improving piecemeal trade and environmental policy reforms in a small economy. Changing trade and environment distortions in proportion to their optimal levels increases welfare. The authors decompose the economic and environment effects of policies targeted at trade and pollution in both consumption and production. They also decompose production responses into output adjustments and changes in pollution intensities.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 30 (1997)
Issue (Month): 2 (May)
Pages: 442-55

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Handle: RePEc:cje:issued:v:30:y:1997:i:2:p:442-55

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Citations

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Cited by:
  1. Sébastien Dessus & David O'Connor, 2003. "Climate Policy without Tears CGE-Based Ancillary Benefits Estimates for Chile," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(3), pages 287-317, July.
  2. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2000. "Can Cross-Border Pollution Reduce Pollution?," CESifo Working Paper Series 360, CESifo Group Munich.
  3. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Reforms of Environmental Policies in the Presence of Cross-border Pollution and two Stage Clean Up," University of Cyprus Working Papers in Economics 0203, University of Cyprus Department of Economics.
  4. Beghin, John C. & Dessus, Sebastien, 1999. "Double Dividend With Trade Distortions: Analytical Results And Evidence From Chile," 1999 Annual meeting, August 8-11, Nashville, TN 21509, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Estelle, Gozlan & Ramos, Maria Priscila, 2007. "Not in Your Backyard? Selective Tariff Cuts for Environmentally Preferable Products," Working Papers 7031, TRADEAG - Agricultural Trade Agreements.
  6. J. Peter Neary, 2000. "International Trade and the Environment - Theoretical and Policy Linkages," Working Papers 200018, School Of Economics, University College Dublin.
  7. Heinz Jansen, 2001. "Induced Institutional Change in the Trade and Environment Debate," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(2), pages 149-172, February.
  8. Michael S. Michael & Sajal Lahiri & Panos Hatzipanayotou, 2013. "Piecemeal Reform of Domestic Indirect Taxes toward Uniformity in the Presence of Pollution: with and without a Revenue Constraint," University of Cyprus Working Papers in Economics 03-2013, University of Cyprus Department of Economics.
  9. Krissoff, Barry & Ballenger, Nicole & Dunmore, John C. & Gray, Denice, 1996. "Exploring Linkages Among Agriculture, Trade, and the Environment: Issues for the Next Century," Agricultural Economics Reports 33961, United States Department of Agriculture, Economic Research Service.
  10. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics.
  11. Michael S. Michael & Panos Hatzipanayotou, 2012. "Pollution and Reforms of Domestic and Trade Taxes towards Uniformity," University of Cyprus Working Papers in Economics 11-2012, University of Cyprus Department of Economics.
  12. Beghin, John & Dessus, Sebastien & Roland-Holst, David & van der Mensbrugghe, Dominique, 1997. "The trade and environment nexus in Mexican agriculture. A general equilibrium analysis," Agricultural Economics, Blackwell, vol. 17(2-3), pages 115-131, December.
  13. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2005. "Globalization, Cross-Border Pollution and Welfare," CESifo Working Paper Series 1479, CESifo Group Munich.
  14. Toma, Luiza & Mathijs, Erik & Revoredo-Giha, Cesar, 2006. "Linkages between Agriculture, Trade and the Environment in the Context of the European Union Accession," Working Papers 45991, Scottish Agricultural College, Land Economy Research Group.
  15. Panos Hatzipanayotou & Sajal Lahiri & Michael Michael, 2008. "Cross-Border Pollution, Terms of Trade, and Welfare," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(3), pages 327-345, November.
  16. Michael S. Michael & Sajal Lahiri & Panos Hatzipanayotou, 2008. "Integrated Reforms of Indirect Taxes in the Presence of Pollution," CESifo Working Paper Series 2276, CESifo Group Munich.
  17. Gulati, Sumeet, 2003. "The Effect Of Free Trade On Pollution Policy And Welfare," Working Papers 15849, University of British Columbia, Food and Resource Economics.
  18. Schweinberger, A.G. & Woodland, A.D., 2008. "The short and long run effects of tied foreign aid on pollution abatement, pollution and employment: A pilot model," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 310-325, May.

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