Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention

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Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention

Author Info

John Beghin
David Roland-Holst
Dominique van der Mensbrugghe

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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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Publisher 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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Related research
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Other versions of this item:

Paper
- John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," OECD Development Centre Working Papers 99, OECD, Development Centre. [Downloadable!]

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

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. [Downloadable!] (restricted)
Metcalfe, Mark R. & Beghin, John C., 1999. "Piecemeal Reform of Trade and Environmental Policy When Cosumption Also Pollutes," Staff General Research Papers 4047, Iowa State University, Department of Economics. [Downloadable!]
Other versions:
- Mark R. Metcalfe & John C. Beghin, 1999. "Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes," Center for Agricultural and Rural Development (CARD) Publications 99-wp209, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
- Mark R. Metcalfe & John C. Beghin, 1999. "Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp209, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2000. "Can Cross-Border Pollution Reduce Pollution?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
Other versions:
- Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Can cross-border pollution reduce pollution?," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 805-818, November. [Downloadable!] (restricted)
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). [Downloadable!]
Other versions:
- John C. Beghin & Sebastien Dessus, 1999. "Double Dividend with Trade Distortions: Analytical Results and Evidence from Chile," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp225, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
- John C. Beghin & Sebastien Dessus, 1999. "Double Dividend with Trade Distortions: Analytical Results and Evidence from Chile," Center for Agricultural and Rural Development (CARD) Publications 99-wp225, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Ramos, Maria Priscila, 2007. "Politique Commerciale, Qualité et Environnement: une Application aux Négociations Commerciales entre l’Union Européenne et le Mercosur
[Trade Policy, Quality and the Environment: an applicatio," MPRA Paper 12640, University Library of Munich, Germany. [Downloadable!]
Estelle, Gozlan & Ramos, Maria Priscila, 2007. "Not in Your Backyard? Selective Tariff Cuts for Environmentally Preferable Products," Working Papers 7031, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
John C. Beghin & Brad J. Bowland & Sebastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1999. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp211, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
Other versions:
- Beghin, J. & Bowland, B. & Dessus, S. & Roland-Holst, D. & van der Mensbrugghe, D., 2002. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Staff General Research Papers 5121, Iowa State University, Department of Economics.
- Beghin, John & Bowland, Brad & Dessus, Sebastian & Roland-Holst, David & Mensbrugghe, Dominique van der, 1999. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Staff General Research Papers 1359, Iowa State University, Department of Economics. [Downloadable!]
- John C. Beghin & Brad J. Bowland & Sebastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1999. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Center for Agricultural and Rural Development (CARD) Publications 99-wp211, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
- Beghin, John C. & Bowland, Bradley J. & Dessus, S bastien & Roland-Holst, David & Mensbrugghe, Dominique van der, 2002. "Trade integration, environmental degradation, and public health in Chile: assessing the linkages," Environment and Development Economics, Cambridge University Press, vol. 7(02), pages 241-267, May. [Downloadable!]
J. Peter Neary, 2000. "International Trade and the Environment - Theoretical and Policy Linkages," Working Papers 200018, School Of Economics, University College Dublin. [Downloadable!]
Other versions:
- J. Neary, 2006. "International Trade and the Environment: Theoretical and Policy Linkages," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(1), pages 95-118, 01. [Downloadable!] (restricted)
Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2005. "Globalization, Cross-Border Pollution and Welfare," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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. [Downloadable!] (restricted)
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. [Downloadable!]
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. [Downloadable!] (restricted)
Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Reforms of Environmental Policies in the Presence of Cross-border Pollution and Two-stage Clean-up," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
Other versions:
- Hatzipanayotou, Panos & Sajal Lahiri & Michael S.Michael, 2002. "Reforms of Environmental Policies in the presence of Cross-border Pollution and Two-stage Clean-up," Royal Economic Society Annual Conference 2002 97, Royal Economic Society. [Downloadable!]
- 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. [Downloadable!]
Krissoff, Barry & Ballenger, Nicole & Dunmore, John & 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. [Downloadable!]
Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
Gulati, Sumeet, 2003. "The Effect Of Free Trade On Pollution Policy And Welfare," Working Papers 15849, University of British Columbia, Food and Resource Economics. [Downloadable!]
Kenneth A. Reinert, David W. Roland-Holst, 2001. "Industrial Pollution Linkages in North America: a Linear Analysis," Economic Systems Research, Taylor and Francis Journals, vol. 13(2), pages 197-208, June. [Downloadable!] (restricted)
M. Ozgur Kayalica & Olgay Kayalica, 2005. "Transboundary Pollution From Consumption In A Reciprocal Dumping Model," Global Economy Journal, Berkeley Electronic Press, vol. 5(2). [Downloadable!]

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