The Rise of Environmentalism, Pollution Taxes and Intra-Industry Trade
AbstractMany industrialised countries have experienced an increase in environmental awareness and support to green lobby groups in past decades. This paper develops a political-economy model to investigate to what extent a rise of environmentalism, via the induced change in political power structures, can successfully encourage higher pollution taxes and reduce pollution. The model focuses on special-interest group politics, intra-industry trade and a transnational environmental externality. The main finding is that a rise of environmentalism is not sufficient to protect the environment when pollution is relatively immobile and environmentalists are sufficiently concerned with environmental damage in other countries than their own.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0017.
Date of creation: Nov 2000
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Transnational externalities; pollution taxes; lobby groups and trade;
Other versions of this item:
- Toke Aidt, 2004. "The rise of environmentalism, pollution taxes and intra-industry trade," Economics of Governance, Springer, vol. 6(1), pages 1-12, January.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
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