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Product Market Integration and Environmental Policy Coordination in An International Duopoly

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Author Info
Odd Rune Straume ()

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Abstract

We analyse the effect of product market integration on environmental policy incentives in an international duopoly, where national policy makers act strategically. If traditional trade policy instruments are not available, environmental policies will typically be determined by the interaction of conflicting policy incentives. Contrary to popular belief, we find that international product market integration, in this particular setting, might reduce the need for transnational policy coordination, both from a purely environmental and from a social welfare perspective. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s10640-006-0013-0
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 34 (2006)
Issue (Month): 4 (August)
Pages: 535-563
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:enreec:v:34:y:2006:i:4:p:535-563

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: product market integration; strategic environmental policy; policy coordination; F12; F15; F18; H23;

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References listed on IDEAS
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    Other versions:
  4. Copeland, Brian R & Taylor, M Scott, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 755-87, August. [Downloadable!] (restricted)
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  5. Hoel, Michael, 1997. " Environmental Policy with Endogenous Plant Locations," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(2), pages 241-59, June. [Downloadable!] (restricted)
  6. Ulph, Alistair & Valentini, Laura, 2001. " Is Environmental Dumping Greater When Plants Are Footloose?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 103(4), pages 673-88, December. [Downloadable!] (restricted)
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  13. Greaker, Mads, 2003. "Strategic environmental policy; eco-dumping or a green strategy?," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 692-707, May. [Downloadable!] (restricted)
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  19. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-41, December. [Downloadable!] (restricted)
  20. Naylor, Robin, 1999. "Union Wage Strategies and International Trade," Economic Journal, Royal Economic Society, vol. 109(452), pages 102-25, January. [Downloadable!] (restricted)
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  21. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May. [Downloadable!] (restricted)
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  23. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September. [Downloadable!] (restricted)
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