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The Rise of Environmentalism, Pollution Taxes and Intra-Industry Trade

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  • Aidt, T.S.

Abstract

Many 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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File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/wp0017.pdf
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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0017.

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Date of creation: Nov 2000
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Handle: RePEc:cam:camdae:0017

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Keywords: Transnational externalities; pollution taxes; lobby groups and trade;

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Citations

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Cited by:
  1. Joan Canton, 2009. "Environmentalists' Behaviour and Environmental Policies policies," Working Papers 2009.76, Fondazione Eni Enrico Mattei.
  2. Joan Canton, 2007. "Redealing the Cards: How the Presence of an Eco-Industry Modifies the Political Economy of Environmental Policies," Working Papers 2007.25, Fondazione Eni Enrico Mattei.
  3. Joachim Fünfgelt & Günther G. Schulze, 2011. "Endogenous Environmental Policy when Pollution is Transboundary," Working Paper Series in Economics 196, University of Lüneburg, Institute of Economics.
  4. Per G. Fredriksson & Eric Neumayer & Gergely Ujhelyi, 2007. "Kyoto protocol cooperation: does government corruption facilitate environmental lobbying?," LSE Research Online Documents on Economics 3060, London School of Economics and Political Science, LSE Library.

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