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Trade liberalization, consumption externalities and the environment

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Author Info
Yu-Bong Lai () (Department of Public Finance , National Taipei University)

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Abstract

It has conventionally been argued that trade liberalization will degrade the environment of a country that imports a good whose consumption gives rise to pollution. By contrast, this note demonstrates that, if the linkage between the trade and the environmental policies has been taken into consideration, then liberalizing trade in a good that generates consumption-type negative externalities will actually improve the environment of the importing country.

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File URL: http://www.economicsbulletin.com/2004/volume17/EB-04Q20005A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 17 (2004)
Issue (Month): 5 ()
Pages: 1-9
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:17:y:2004:i:5:p:1-9

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Related research
Keywords: consumption externalities; environmental tax; tariff; trade liberalization;

Find related papers by JEL classification:
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
F1 - International Economics - - Trade

References listed on IDEAS
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.:

  1. Per G. Fredriksson, 1999. "The Political Economy of Trade Liberalization and Environmental Policy," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 513-535, January.
  2. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November. [Downloadable!] (restricted)
  3. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2003. "Trade Facilitation and Economic Development: A New Approach to Quantifying the Impact," World Bank Economic Review, Oxford University Press, vol. 17(3), pages 367-389, December.
  4. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January. [Downloadable!] (restricted)
  5. Günther Schulze, 1999. "International Trade in Art," Journal of Cultural Economics, Springer, vol. 23(1), pages 109-136, March. [Downloadable!] (restricted)
  6. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March. [Downloadable!] (restricted)
  7. Bommer, Rolf & Schulze, Gunther G., 1999. "Environmental improvement with trade liberalization," European Journal of Political Economy, Elsevier, vol. 15(4), pages 639-661, November. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, vol. 5(1), pages 15-29, February. [Downloadable!] (restricted)
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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.)

  1. Shuichi Ohori, 2006. "Trade liberalization, consumption externalities and the environment: a mixed duopoly approach," Economics Bulletin, Economics Bulletin, vol. 17(5), pages 1-9. [Downloadable!]
  2. Shuichi Ohori, 2006. "Environmental tax and trade liberalization in a mixed duopoly," KIER Working Papers 622, Kyoto University, Institute of Economic Research. [Downloadable!]
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