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Trade, Politics,and the Environment: Tailpipe vs. Smokestack

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Author Info
Carol McAusland (University of California, Santa Barbara)

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Abstract

Economists interested in the interaction between trade, politics and the environ-ment have restricted their attention almost exclusively to the problem of production related--"smokestack"--pollution. We instead consider consumption related--"tailpipe"--pollution and show that this can reverse a number of core results. For example, we show that the impact of regulation on trade patterns depends on the type of pollution being regulated: while strict smokestack regula-tion dampens exports of pollution intensive goods, tailpipe regulation may promote these exports. Similarly, we show that pollution type may fundamentally alter the impact of openness on political opposition to environmental regulation: while openness may make dirty industry oppose smokestack regulation more vociferously, it can make industry a less ardent enemy of tailpipe regulation.

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File URL: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1163&context=ucsbecon
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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number 8-04.

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Date of creation: 01 Dec 2003
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Handle: RePEc:cdl:ucsbec:8-04

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Keywords: Trade; Politics; Environment;

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References listed on IDEAS
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.:
  1. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September. [Downloadable!] (restricted)
  2. Saul H. Hymans, 1970. "Consumer Durable Spending: Explanation and Prediction," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 1(1970-2), pages 173-206. [Downloadable!]
  3. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November. [Downloadable!] (restricted)
  4. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March. [Downloadable!] (restricted)
  5. Bommer, Rolf & Schulze, Gunther G., 1999. "Environmental improvement with trade liberalization," European Journal of Political Economy, Elsevier, vol. 15(4), pages 639-661, November. [Downloadable!] (restricted)
  6. Robert S. Pindyck, 1979. "The Structure of World Energy Demand," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661772.
  7. Robert Deacon, 1999. "The Political Economy of Environment-Development Relationships: A Preliminary Framework," University of California at Santa Barbara, Economics Working Paper Series wp11-99, Department of Economics, UC Santa Barbara. [Downloadable!]
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  8. Buchanan, James M & Tullock, Gordon, 1975. "Polluters' Profits and Political Response: Direct Controls Versus Taxes," American Economic Review, American Economic Association, vol. 65(1), pages 139-47, March. [Downloadable!] (restricted)
  9. Arik Levinson & M. Scott Taylor, 2008. "Unmasking The Pollution Haven Effect," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(1), pages 223-254, 02. [Downloadable!] (restricted)
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  10. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
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  11. Mody, Ashoka & Roy, Subhendu & Wheeler, David & Dasgupta, Susmita, 1995. "Environmental regulation and development : a cross-country empirical analysis," Policy Research Working Paper Series 1448, The World Bank. [Downloadable!]
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  12. Carol McAusland, 2003. "Harmonizing Emissions Policy in Symmetric Countries: Improve the Environment, Improve Welfare?," University of California at Santa Barbara, Economics Working Paper Series 21-02, Department of Economics, UC Santa Barbara. [Downloadable!]
  13. Schleich, Joachim, 1999. "Environmental quality with endogenous domestic and trade policies1," European Journal of Political Economy, Elsevier, vol. 15(1), pages 53-71, March. [Downloadable!] (restricted)
  14. Daniel J. Graham & Stephen Glaister, 2002. "The Demand for Automobile Fuel: A Survey of Elasticities," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(1), pages 1-25, January. [Downloadable!] (restricted)
  15. McAusland, Carol, 2003. "Voting for pollution policy: the importance of income inequality and openness to trade," Journal of International Economics, Elsevier, vol. 61(2), pages 425-451, December. [Downloadable!] (restricted)
  16. Swee Chua, 2003. "Does tighter environmental policy lead to a comparative advantage in less polluting goods?," Oxford Economic Papers, Oxford University Press, vol. 55(1), pages 25-35, January.
  17. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January. [Downloadable!] (restricted)
  18. Fredriksson, Per G., 1997. "The Political Economy of Pollution Taxes in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 44-58, May. [Downloadable!] (restricted)
  19. Alexander Haupt, 2000. "Environmental Product Standards, International Trade and Monopolistic Competition," International Tax and Public Finance, Springer, vol. 7(4), pages 585-608, August. [Downloadable!] (restricted)
  20. Robert Deacon & Catherine Norman, 2004. "Is the environmental Kuznets curve an empirical regularity?," University of California at Santa Barbara, Economics Working Paper Series 22-03, Department of Economics, UC Santa Barbara. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Carol McAusland, 2003. "Harmonizing Emissions Policy in Symmetric Countries: Improve the Environment, Improve Welfare?," University of California at Santa Barbara, Economics Working Paper Series 21-02, Department of Economics, UC Santa Barbara. [Downloadable!]
  2. repec:bep:eaptop:v:7:y:2007:i:1:p:1717-1717 is not listed on IDEAS
  3. repec:bep:eapcon:v:3:y:2004:i:2:p:1367-1367 is not listed on IDEAS
  4. Lucas W. Davis & Matthew E. Kahn, 2008. "International Trade in Used Durable Goods: The Environmental Consequences of NAFTA," NBER Working Papers 14565, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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