Advanced Search
MyIDEAS: Login to save this paper or follow this series

Dynamic environmental policy in developing countries in the presence of a balance of trade deficit and a tariff

Contents:

Author Info

  • A. Batabyal
  • H. Beladi
  • D. Lee

Abstract

We first review the literature pertaining to the protection of the modern sector in developing countries (DCs). We then discuss the nexuses between protection, economic dualism, and optimal environmental policy in DCs. Next, in the theoretical part of the paper, we construct a dynamic model of the environmental policy formulation process in a stylized DC in which there is a balance of trade deficit, and a tariff that protects the modern—also the import competing and the polluting—sector. The employment and output effects of three different pollution taxes are analyzed. These taxes incorporate different assumptions about the DC government’s ability to commit to its announced course of action. The taxes are characterized, the dependence of these taxes on the extant tariff is studied, and the conditions which call for an activist policy, irrespective of the length of time to which the government can commit to its announced policy, are specified. Our analysis shows that the dynamic inconsistency of some optimal programs and the existence of the tariff can—either singly or collectively—prevent the DC government from attaining its employment and environmental goals.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2000-24.pdf
Our checks indicate that this address may not be valid because: 404 File not found. If this is indeed the case, please notify (John Gilbert)
File Function: First version, 2000
Download Restriction: no

Bibliographic Info

Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2000-24.

as in new window
Length: 37 pages
Date of creation:
Date of revision:
Handle: RePEc:usu:wpaper:2000-24

Contact details of provider:
Email:
Web page: http://apec.usu.edu/
More information through EDIRC

Related research

Keywords: Commitment; developing country; environmental policy; tariff; trade deficit;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:usu:wpaper:2000-24. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Gilbert).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.