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The Role of Green Tariffs in Environmental Harmonization

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Author Info

  • Alireza Naghavi

    (University College Dublin)

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 Function: First version, 2004
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Bibliographic 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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Related research

Keywords: environmental standards; eco-dumping; multinationals; location of firms; pollution abatement R&D; WTO; green tariffs;

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