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Environmental Product Standards in North-South Trade

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  • Ishikawa, Jota
  • Okubo, Toshihiro

Abstract

One channel through which environment is damaged is consumption. To protect environment, various product standards are introduced all over the world. By using a new economic geography framework, this paper explores the effects of environmental product standards on environment in a North-South trade model. We examine a situation in which North unilaterally introduces an environmental product standard. Specifically, those products that do not meet the standard are not allowed to be sold in the North market. We find that such a standard may worsen North environment but improve South environment through firm relocation.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18229/1/070ccesDP_27.pdf
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Bibliographic Info

Paper provided by Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University in its series CCES Discussion Paper Series with number 27.

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Length: 24 p.
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:hit:ccesdp:27

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Related research

Keywords: environmental product standards; compliance costs; firm location; footloose capital model;

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References

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  1. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January.
  2. José Moraga-González & Noemi Padrón-Fumero, 2002. "Environmental Policy in a Green Market," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(3), pages 419-447, July.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. About the impact of environmental product regulation on the environment in the North and the South
    by Economic Logician in Economic Logic on 2010-04-07 14:57:00
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Cited by:
  1. ISHIKAWA Jota & OKUBO Toshihiro, 2013. "Greenhouse Gas Emission Controls and Firm Locations in North-South Trade," Discussion papers 13045, Research Institute of Economy, Trade and Industry (RIETI).

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