Trade, Politics,and the Environment: Tailpipe vs. Smokestack
AbstractEconomists interested in the interaction between trade, politics and the environ-ment have restricted their attention almost exclusively to the problem of production relatedâ€”â€œsmokestackâ€â€”pollution. We instead consider consumption relatedâ€”â€œtailpipeâ€â€”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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Bibliographic InfoPaper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt0406x646.
Date of creation: 01 Dec 2003
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Trade; Politics; Environment;
Other versions of this item:
- McAusland, Carol, 2008. "Trade, politics, and the environment: Tailpipe vs. smokestack," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 52-71, January.
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