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Product Market Integration and Environmental Policy Coordination in An International Duopoly

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  • 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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Bibliographic 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

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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

Related research

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

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References

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Citations

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Cited by:
  1. Hassan Benchekroun & Halis Murat Yildiz, 2011. "Free Trade, Autarky and the Sustainability of an International Environmental Agreement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 9.
  2. Panos Hatzipanayotou & Fabio Antoniou & Phoebe Koundouri, 2010. "Tradable Permits vs Ecological Dumping," Working Papers 2010.2, Fondazione Eni Enrico Mattei.
  3. Ferrara, Ida & Missios, Paul & Murat Yildiz, Halis, 2009. "Trading rules and the environment: Does equal treatment lead to a cleaner world?," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 206-225, September.
  4. Rabindra N. Bhattacharya & Rupayan Pal, 2008. "Environmental Standards as Strategic Outcomes : A Simple Model," Development Economics Working Papers 22151, East Asian Bureau of Economic Research.
  5. Kenji Fujiwara, 2011. "Market Integration and Competition in Environmental and Trade Policies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(4), pages 561-572, August.

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