Market Integration and Competition in Environmental and Trade Policies
AbstractRecent empirics suggest the relevance of transport cost reductions for world trade growth along with eliminations in protectionist trade barriers. To address the welfare effects of trade cost reductions in a context of `trade and the environment,' we develop a two-stage game model where governments choose environmental and trade policies and rms play a Cournot-Nash game. We show that reductions in transport costs lead to lower emission taxes and higher tariffs. And, we nd that the degree of pollution damage plays a central role in whether market integration is welfare-improving relative to autarky.
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 49 (2011)
Issue (Month): 4 (August)
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Web page: http://www.springerlink.com/link.asp?id=100263
Market integration; Oligopoly; Pollution tax; Tariff; Gains/losses from trade; F12; F18; L13; Q56;
Other versions of this item:
- Kenji Fujiwara, 2010. "Market Integration and Competition in Environmental and Trade Policies," Discussion Paper Series 63, School of Economics, Kwansei Gakuin University, revised Nov 2010.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F18 - International Economics - - Trade - - - Trade and Environment
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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