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Economic integration and the environment: Effects on members and non-members

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  • Michael Rauscher

Abstract

The paper analyses the effects of economic integration and national environmental policies in a three-country world. There are two factors of production, an environmental good and capital, which is internationally mobile. Two of the countries create an internal market. This is modelled by a reduction in mobility costs. This process of economic integration leads to a relocation of the factors of production. The welfare effects of factor relocation are analysed for different types of environmental policies. Special emphasis is placed on the issue of international externalities such as transboundary pollution spill-overs. Copyright Kluwer Academic Publishers 1992

Suggested Citation

  • Michael Rauscher, 1992. "Economic integration and the environment: Effects on members and non-members," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 221-236, March.
    • Handle: RePEc:kap:enreec:v:2:y:1992:i:2:p:221-236
    DOI: 10.1007/BF00338244
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    5. Lloyd, P. J., 1982. "3 x 3 theory of customs unions," Journal of International Economics, Elsevier, vol. 12(1-2), pages 41-63, February.
    6. Dixit, Avinash, 1985. "Tax policy in open economies," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 6, pages 313-374, Elsevier.
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