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Environmental Control Costs and U.S. Effective Rates of Protection

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  • Carl A. Pasurka JR

    (Southern Illinois University at Carbondale)

Abstract

This study investigates the impact of U.S. environmental control costs on the Abstract effective rates of protection given to U.S. industrial sectors in 1977. The effective rate of protection equation is modified in order to quantify the loss of protection due to environmental control costs and compare it to the protection afforded by the tariff structure. Results are presented for the following two cases: (1) only direct environmental control costs influence the net level of protection, and (2) direct environmental control costs and environmental control costs borne by inputs influence the net level of protection. For the case with direct environmental control costs and environmental control costs borne by inputs, the loss ofprotection due to environmental control costs is 19.67% of the protection afforded by the U.S. tariff structure.

Suggested Citation

  • Carl A. Pasurka JR, 1985. "Environmental Control Costs and U.S. Effective Rates of Protection," Public Finance Review, , vol. 13(2), pages 161-182, April.
    • Handle: RePEc:sae:pubfin:v:13:y:1985:i:2:p:161-182
    DOI: 10.1177/109114218501300203
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    References listed on IDEAS

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    1. Ingo Walter, 1974. "Pollution and protection: U. S. environmental controls as competitive distortions," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 110(1), pages 104-113, March.
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    3. Mutti, John H. & Richardson, J. David, 1977. "International competitive displacement from environmental control The quantitative gains from methodological refinement," Journal of Environmental Economics and Management, Elsevier, vol. 4(2), pages 135-152, June.
    4. Kazumi Asako, 1979. "Environmental Pollution in an Open Economy," The Economic Record, The Economic Society of Australia, vol. 55(4), pages 359-367, December.
    5. McGuire, Martin C., 1982. "Regulation, factor rewards, and international trade," Journal of Public Economics, Elsevier, vol. 17(3), pages 335-354, April.
    6. Siebert, Horst, 1979. "Environmental policy in the two-country-case," Open Access Publications from Kiel Institute for the World Economy 3526, Kiel Institute for the World Economy (IfW Kiel).
    7. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
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    Cited by:

    1. Dean, Judith M., 1992. "Trade and the environment : a survey of the literature," Policy Research Working Paper Series 966, The World Bank.
    2. Kozloff, Keith & Runge, C. Ford, 1991. "International Trade In The Food Sector And Environmental Quality, Health, And Safety: A Survey Of Policy Issues," Staff Papers 13325, University of Minnesota, Department of Applied Economics.
    3. Xing, Yuqing & Kolstad, Charles, 1996. "Environment and Trade: A Review of Theory and Issues," MPRA Paper 27694, University Library of Munich, Germany.

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