Globalization, Cross-Border Pollution and Welfare
AbstractWe construct a two-good general equilibrium model of international trade for two small open economies where pollution from production is transmitted across borders. Governments in both countries impose emission taxes non-cooperatively. Within this framework, we examine the effect of trade liberalization and of changes in the perception of cross-border pollution on Nash emission taxes, emission levels, and welfare.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1479.
Date of creation: 2005
Date of revision:
cross-border pollution; emission taxes; terms of trade; globalization; welfare;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-08-13 (All new papers)
- NEP-ENE-2005-08-13 (Energy Economics)
- NEP-ENV-2005-08-13 (Environmental Economics)
- NEP-INT-2005-08-13 (International Trade)
- NEP-PBE-2005-08-13 (Public Economics)
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