Environmental Policy in Open Economies and Monopolistic Competition
AbstractThis paper analyses the implications of international trade for non-cooperative environmental policy in the case of local production externalities. A particular focus is on the potential effects of regulations on the variety of goods and the resulting international spillover caused by trade. A tougher domestic standard negatively affects the utility of the households abroad, since such a policy reduces their variety of imports (due to fewer domestic product inventions) or their consumption of each imported brand (due to higher import prices). Ignoring the negative spillover, non-cooperative governments implement inefficiently strict standards in equilibrium. In contrast to this clear-cut inefficiency result, the impact of international trade on the state of the environment is ambiguous. Copyright Springer 2006
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.
Volume (Year): 33 (2006)
Issue (Month): 2 (02)
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Web page: http://www.springerlink.com/link.asp?id=100263
environmental policy; international trade; monopolistic competition; open economies; process standards; Q28; F13; F12;
Find related papers by JEL classification:
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
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- Udo Kreickemeier & Philipp M. Richter, 2012.
"Trade and the Environment: The Role of Firm Heterogeneity,"
Discussion Papers of DIW Berlin
1214, DIW Berlin, German Institute for Economic Research.
- Kreickemeier, Udo & Richter, Philipp M., 2012. "Trade and the environment: The role of firm heterogeneity," University of Tuebingen Working Papers in Economics and Finance 36, University of Tuebingen, Faculty of Economics and Social Sciences.
- Udo Kreickemeier & Philipp M. Richter, 2012. "Trade and the Environment: The Role of Firm Heterogeneity," CESifo Working Paper Series 3846, CESifo Group Munich.
- Gori, Giuseppe Francesco & Lambertini, Luca, 2013.
"Trade liberalisation between asymmetric countries with environmentally concerned consumers,"
Regional Science and Urban Economics,
Elsevier, vol. 43(4), pages 549-560.
- Giuseppe Francesco Gori & Luca Lambertini, 2012. "Trade Liberalisation between Asymmetric Countries with Environmentally Concerned Consumers," Working Paper Series, The Rimini Centre for Economic Analysis 40_12, The Rimini Centre for Economic Analysis.
- G. F. Gori & L. Lambertini, 2012. "Trade liberalisation between Asymmetric Countries with Environmentally Concerned Consumers," Working Papers wp824, Dipartimento Scienze Economiche, Universita' di Bologna.
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