Domestic Effects of Environmental Poclicies with Transboundary Pollution
AbstractWe model environmental interaction among countries as a policy game where government in each country use quotas or taxes as a strategy variables. The environmental policy has a triple role to play : targeting domestic emission, providing strategic advantages for domestic firms and targeting imported pollution. Using a multi-sector economic model, we show that, besides the well-known inefficiencies arising at the international level, the environmental policy may lead to purely domestic inefficiencies.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2010014.
Date of creation: 01 Mar 2010
Date of revision:
Environmental policy; Transboundary Pollution; Multi-sector Model;
Other versions of this item:
- Michel Cavagnac & Isabelle Péchoux, 2010. "Domestic Effects of Environmental Policies with Transboundary Pollution," Recherches économiques de Louvain, De Boeck Université, De Boeck Université, vol. 76(1), pages 113-134.
- CAVAGNAC Michel & PECHOUX Isabelle, 2007. "Domestic effects of environmental policies with transboundary pollution," LERNA Working Papers, LERNA, University of Toulouse 07.07.228, LERNA, University of Toulouse.
- F18 - International Economics - - Trade - - - Trade and Environment
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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