The Effects of Differentiated Emission Taxes
AbstractExtending the standard 2 x 2 Heckscher-Ohlin-Samuelson model to include emission as the third production factor, we consider the effects of emission taxes on outputs and the level of emission. The following results are derived. First, an increase in emission tax imposed on one industry may paradoxically increase the outputs of the industry. Second, an increase in emission tax imposed on one industry may raise the total level of emission.
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Bibliographic InfoPaper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2001-02.
Length: 15 p.
Date of creation: Jan 2001
Date of revision:
Emission; the Heckscher-Ohlin-Samuelson model; differentiated emission taxes;
Find related papers by JEL classification:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F18 - International Economics - - Trade - - - Trade and Environment
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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