The Role of Green Tariffs in Environmental Harmonization
AbstractThis 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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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 200407.
Length: 25 pages
Date of creation: 13 Apr 2004
Date of revision:
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, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Government Policy; Regulatory Policy
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