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On trade liberalization and transboundary pollution

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Author Info

  • Soham Baksi

    ()
    (University of Winnipeg)

  • Amrita Ray chaudhuri

    ()
    (CentER, TILEC, Tilburg University)

Abstract

We examine the impact of freer trade on equilibrium pollution tax and welfare when markets are imperfectly competitive and pollution is transboundary. In the symmetric case, bilateral tariff reduction (i) strengthens environmental protection if and only if pollution is sufficiently harmful, and (ii) decreases welfare in the neighbourhood of free trade.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P13.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 4 ()
Pages: 2605-2612

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Handle: RePEc:ebl:ecbull:eb-09-00376

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Related research

Keywords: Transboundary pollution; Strategic environmental policy; Bilateral trade liberalization;

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References

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  1. Burguet, Roberto & Sempere, Jaume, 2003. "Trade liberalization, environmental policy, and welfare," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 25-37, July.
  2. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
  3. Josh Ederington & Jenny Minier, 2000. "Is Environmental Policy a Secondary Trade Barrier? An Empirical Analysis," Econometric Society World Congress 2000 Contributed Papers 1507, Econometric Society.
  4. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 1998. "Is Free Trade Good for the Environment?," NBER Working Papers 6707, National Bureau of Economic Research, Inc.
  5. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
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Citations

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Cited by:
  1. Soham Baksi, 2011. "Regional versus Multilateral Trade Liberalization, Environmental Taxation and Welfare," Departmental Working Papers 2011-03, The University of Winnipeg, Department of Economics.
  2. Kenji Fujiwara, 2010. "Market Integration and Competition in Environmental and Trade Policies," Discussion Paper Series 63, School of Economics, Kwansei Gakuin University, revised Nov 2010.
  3. Takeshi Iida & Kenji Takeuchi, 2010. "Policy-Induced Environmental Technology Transfer," Discussion Papers 1008, Graduate School of Economics, Kobe University.
  4. Takeshi Iida & Kenji Takeuchi, 2011. "Does free trade promote environmental technology transfer?," Journal of Economics, Springer, vol. 104(2), pages 159-190, October.

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