Intra-Industry Trade in Dirty Goods and Environmental Policies
AbstractIn this paper we study the effect of intra-industry trade in an environmental-quality differentiated good on the pollution level in a two-country framework when there are strategic interactions between the firms in the two countries. The pro-competitive effect of intra-industry trade expands the scale of production and, therefore, increases pollution in both the countries. Effect on the strategic choice of environmental qualities of the good is, on the other hand, asymmetric for the two producers. Impact of environmental policies like pollution content production tax and tariff on trade and pollution levels are also studied. .
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49167.
Date of creation: 15 Jun 2013
Date of revision:
Intra-Industry trade; environmental pollution; environmental standard;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
- Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-08-31 (Agricultural Economics)
- NEP-ALL-2013-08-31 (All new papers)
- NEP-ENV-2013-08-31 (Environmental Economics)
- NEP-INT-2013-08-31 (International Trade)
- NEP-RES-2013-08-31 (Resource Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Sen, Anindita & Acharyya, Rajat, 2012. "Environmental standard and employment: impact of productivity effect," Environment and Development Economics, Cambridge University Press, vol. 17(02), pages 207-225, April.
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