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The Role of Green Tariffs in Environmental Harmonization

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Author Info
Alireza Naghavi (University College Dublin)

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Abstract

This paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and environmental policy. Besides the standard effect of reducing trade and production of dirty goods, green tariffs discourage firms from relocating to pollution havens and induce them to engage in pollution abatement R&D instead. With no concern about pollution among Southern residents, green tariffs can block delocation to serve as the only means of persuading the South to harmonize its environmental standards. When some concern exists, tougher environmental regulations are adopted for a wider range of standards.

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File URL: http://www.ucd.ie/economics/research/papers/2004/WP04.07.pdf
File Format: application/pdf
File Function: First version, 2004
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Publisher Info
Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 200407.

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Length: 25 pages
Date of creation: 13 Apr 2004
Date of revision:
Handle: RePEc:ucn:wpaper:200407

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Postal: UCD, Belfield, Dublin 4
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Web page: http://www.ucd.ie/economics
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Related research
Keywords: environmental standards; eco-dumping; multinationals; location of firms; pollution abatement R&D; WTO; green tariffs;

Find related papers by JEL classification:
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 (the Commons)
R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies

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This page was last updated on 2009-11-20.


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