Exports Competitiveness and Environmental Regulations
AbstractEcological dumping refers a situation where governments choose less strict environmental standards. In consequence, dumping refers to producers obtaining hidden subsidies in the form of less strict pollution abatement requirements, this situation allows them to dump their products in international markets at prices that not reflect the true cost of production. In contrast to normal dumping, ecological dumping is an activity performed by governments, not by companies. In the European Union the principle of subsidiarity calls for national standards, whereas harmonization of national regulations calls for European standards. The common European objective was the assessment of the possibilities that governments might compete by undercutting each others’ environmental standards in a federal economy consisting of countries that differ in size and other characteristics. In the case of EU countries trade policy is banned, but the responsibility for environmental policies is common. European Union has created European Union's Emissions Trading System (EU ETS) which is the first large emissions trading scheme in the world.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest in its journal Knowledge Horizons - Economics.
Volume (Year): 5 (2013)
Issue (Month): 3 (September)
Ecological dumping; environmental standards; principle of subsidiarity; trade policy; emissions trading system;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rauscher, Michael, 2001. "International Trade, Foreign Investment, and the Enivronment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
- Walz, Uwe & Wellisch, Dietmar, 1997. "Is free trade in the interest of exporting countries when there is ecological dumping?," Journal of Public Economics, Elsevier, vol. 66(2), pages 275-291, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adi Sava).
If references are entirely missing, you can add them using this form.