IDEAS home Printed from https://ideas.repec.org/a/bla/jecrev/v63y2012i2p185-203.html
   My bibliography  Save this article

Is Emission Trading Beneficial?

Author

Listed:
  • JOTA ISHIKAWA
  • KAZUHARU KIYONO
  • MORIHIRO YOMOGIDA

Abstract

We develop a two-country (North and South), two-good, general equilibrium model of international trade in goods and explore the effects of domestic and international emission trading under free trade in goods. Whereas domestic emission trading in North may result in carbon leakage by expanding South's production of the emission-intensive good, international emission trading may induce North to expand the production of the emission-intensive good by importing emission permits. Emission trading may deteriorate global environment. North's (South's) emission trading may not benefit South (North). International emission trading improves global efficiency but may not benefit both countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jota Ishikawa & Kazuharu Kiyono & Morihiro Yomogida, 2012. "Is Emission Trading Beneficial?," The Japanese Economic Review, Japanese Economic Association, vol. 63(2), pages 185-203, June.
    • Handle: RePEc:bla:jecrev:v:63:y:2012:i:2:p:185-203
    DOI: j.1468-5876.2012.00570.x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1468-5876.2012.00570.x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/j.1468-5876.2012.00570.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Should there be international trade in pollution rights?
      by Economic Logician in Economic Logic on 2011-05-02 19:50:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kazuharu Kiyono & Jota Ishikawa, 2013. "Environmental Management Policy Under International Carbon Leakage," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(3), pages 1057-1083, August.
    2. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(3), pages 381-413, June.
    3. Yoshiaki Nakada, 2017. "The effects of energy and commodity prices on commodity output in a three-factor, two-good general equilibrium trade model," Papers 1711.10096, arXiv.org, revised Nov 2018.
    4. Jota Ishikawa & Kazuharu Kiyono & Morihiro Yomogida, 2024. "Emissions Trading and International Trade," Contributions to Economics, in: Sugata Marjit & Biswajit Mandal (ed.), International Trade, Resource Mobility and Adjustments in a Changing World, chapter 0, pages 147-175, Springer.
    5. Shiro Takeda & Toshi H. Arimura & Makoto Sugino, 2019. "Labor Market Distortions and Welfare-Decreasing International Emissions Trading," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 271-293, September.
    6. Keisaku HIGASHIDA & Jota ISHIKAWA & Nori TARUI, 2021. "Carrying Carbon? Negative and Positive Carbon Leakage with International Transport," Discussion papers 21102, Research Institute of Economy, Trade and Industry (RIETI).
    7. Jota Ishikawa & Toshihiro Okubo, 2017. "Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 637-660, August.
    8. Haitao CHENG & Jota ISHIKAWA, 2021. "Carbon Tax and Border Tax Adjustments with Technology and Location Choices," Discussion papers 21030, Research Institute of Economy, Trade and Industry (RIETI).
    9. Cheng, Haitao, 2024. "Domestic versus international emissions trading with capital mobility," Resource and Energy Economics, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harris, Richard G. & Schmitt, Nicolas, 2001. "Strategic export policy with foreign direct investment and import substitution," Journal of Development Economics, Elsevier, vol. 64(1), pages 293-312, February.
    2. Masako Ikefuji & Jun-ichi Itaya & Makoto Okamura, 2016. "Optimal Emission Tax with Endogenous Location Choice of Duopolistic Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 463-485, October.
    3. Fredriksson, Per G. & List, John A. & Millimet, Daniel L., 2004. "Chasing the smokestack: strategic policymaking with multiple instruments," Regional Science and Urban Economics, Elsevier, vol. 34(4), pages 387-410, July.
    4. Banzhaf, H. Spencer & Chupp, B. Andrew, 2012. "Fiscal federalism and interjurisdictional externalities: New results and an application to US Air pollution," Journal of Public Economics, Elsevier, vol. 96(5), pages 449-464.
    5. Jiunn-Rong Chiou & Jin-Li Hu, 2001. "Environmental Research Joint Ventures under Emission Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 129-146, October.
    6. Petrakis, Emmanuel & Xepapadeas, Anastasios, 2003. "Location decisions of a polluting firm and the time consistency of environmental policy," Resource and Energy Economics, Elsevier, vol. 25(2), pages 197-214, May.
    7. Hikaru Ogawa, 2010. "Fiscal Competition among Regional Governments - Tax Competition, Expenditure Competition and Externalities -," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(1), pages 1-30, February.
    8. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    9. Eichner, Thomas & Runkel, Marco, 2014. "Subsidizing renewable energy under capital mobility," Journal of Public Economics, Elsevier, vol. 117(C), pages 50-59.
    10. De Santis Roberto A. & Stähler Frank, 2009. "Foreign Direct Investment and Environmental Taxes," German Economic Review, De Gruyter, vol. 10(1), pages 115-135, February.
    11. Zhigao Luo & Xinyun Hu & Mingming Li & Jirui Yang & Chuanhao Wen, 2019. "Centralization or Decentralization of Environmental Governance—Evidence from China," Sustainability, MDPI, vol. 11(24), pages 1-20, December.
    12. O. Amerighi & G. De Feo, 2007. "Competition for FDI in the Presence of a Public Firm and the Effects of Privatization," Working Papers 605, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. McAusland, Carol, 2005. "Harmonizing tailpipe policy in symmetric countries: Improve the environment, improve welfare?," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 229-251, September.
    14. Imad Moosa, 2019. "The Environmental Effects of FDI: Evidence from MENA Countries," Working Papers 1321, Economic Research Forum, revised 21 Aug 2019.
    15. Sigman, Hilary, 2005. "Transboundary spillovers and decentralization of environmental policies," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 82-101, July.
    16. Polk, Andreas & Schmutzler, Armin & Müller, Adrian, 2014. "Lobbying and the power of multinational firms," European Journal of Political Economy, Elsevier, vol. 36(C), pages 209-227.
    17. Lizhi Cui & Min Chen, 2024. "Haze Management Competition and Industrial Green Transformation," Sustainability, MDPI, vol. 16(13), pages 1-22, July.
    18. Thierry Madiès & Emmanuelle Taugourdeau, 2020. "Vertical transfers and tax competition: does trade integration matter?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 453-475, October.
    19. Cheng, Haitao, 2021. "Trade, Consumption Pollution and Tax," Discussion paper series HIAS-E-106, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    20. Juan Bárcena-Ruiz & María Garzón, 2006. "Mixed Oligopoly and Environmental Policy," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(2), pages 139-160, June.

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecrev:v:63:y:2012:i:2:p:185-203. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jeaaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.