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On the Effects of Emission Standards as Technical Barriers to Trade: A Foreign Duopoly Case

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  • Tsuyoshi Toshimitsu

    ()
    (School of Economics, Kwansei Gakuin University)

Abstract

Employing an environmentally differentiated duopoly model, we analyze how emission standards affect imports, the environment, and social welfare. We show that a strict emission standard is not necessarily import-restrictive, whereas it may possibly degrade the environment. Furthermore, we present evidence that the effect of emission standards on net social surplus depends on the mode of market competition and the degree of marginal social valuation of environmental damage.

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File URL: http://192.218.163.163/RePEc/pdf/kgdp34.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 34.

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Length: 32 pages
Date of creation: Jun 2007
Date of revision: Jun 2007
Handle: RePEc:kgu:wpaper:34

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Keywords: emission standards; environmentally differentiated duopoly; green market;

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  1. Besanko, David, 1987. "Performance versus design standards in the regulation of pollution," Journal of Public Economics, Elsevier, vol. 34(1), pages 19-44, October.
  2. Tsuyoshi Toshimitsu & Naoto Jinji, 2008. "A Note on Strategic Trade Policy and Endogenous Quality Choice," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 173-185, 02.
  3. Rauscher, Michael, 1997. "International Trade, Factor Movements, and the Environment," OUP Catalogue, Oxford University Press, number 9780198290506, September.
  4. Toshimitsu, Tsuyoshi, 2008. "Effect of a tariff on the environment and welfare: The case of an environmental differentiated duopoly in a Green Market," Japan and the World Economy, Elsevier, vol. 20(1), pages 114-128, January.
  5. Uri Ronnen, 1991. "Minimum Quality Standards, Fixed Costs, and Competition," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 490-504, Winter.
  6. J. Neary, 2006. "International Trade and the Environment: Theoretical and Policy Linkages," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(1), pages 95-118, 01.
  7. Laura Valentini, 2005. "Environmental Quality Provision and Eco-labelling: Some Issues," Working Papers id:281, eSocialSciences.
  8. Valletti, Tommaso M, 2000. "Minimum Quality Standards under Cournot Competition," Journal of Regulatory Economics, Springer, vol. 18(3), pages 235-45, November.
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