Can R&D-Inducing Green Tariffs Replace International Environmental Regulations?
AbstractThis paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and the environment. It shows that tariffs levied on polluting goods could result in less global pollution than harmonization of environmental standards by inducing more pollution abatement R&D, generating lower unit emissions from production, and reducing competition. Green tariffs reduce pollution by (1) shifting production to the region where environmental standards are respected, (2) strategically inducing abatement R&D by the Northern firm by granting the latter a higher market share, (3) creating abatement R&D by deterring delocation.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.92.
Date of creation: Jun 2006
Date of revision:
Environmental Standards; Multinationals; Location of Firms; Pollution Abatement R&D; Green Tariffs;
Other versions of this item:
- Naghavi, Alireza, 2007. "Can R&D-inducing green tariffs replace international environmental regulations?," Resource and Energy Economics, Elsevier, vol. 29(4), pages 284-299, November.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F18 - International Economics - - Trade - - - Trade and Environment
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-21 (All new papers)
- NEP-ENE-2006-07-21 (Energy Economics)
- NEP-ENV-2006-07-21 (Environmental Economics)
- NEP-INO-2006-07-21 (Innovation)
- NEP-INT-2006-07-21 (International Trade)
- NEP-PBE-2006-07-21 (Public Economics)
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