IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v31y2023i4p1246-1270.html
   My bibliography  Save this article

Low tariff on dirty goods—Environmental negligence or environmental concern?

Author

Listed:
  • Sugata Marjit
  • Arijit Mukherjee

Abstract

Shapiro (Quarterly Journal of Economics, 2021) conducts an in‐depth empirical analysis to show that dirtier upstream goods face lower import tariffs than cleaner downstream goods. Inspired by that paper, we examine how the welfare maximizing tariffs on the final goods will differ depending on the dirtiness and the extent of cross border pollution. We show that countries concerned about controlling pollution but maximizing own welfare would be encouraged toward relatively unfettered import of dirtier final goods if pollution is mainly generated through domestic production. We discuss the implications of global welfare maximizing tariff protection, pollution taxes, and multiple tradable products.

Suggested Citation

  • Sugata Marjit & Arijit Mukherjee, 2023. "Low tariff on dirty goods—Environmental negligence or environmental concern?," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1246-1270, September.
    • Handle: RePEc:bla:reviec:v:31:y:2023:i:4:p:1246-1270
    DOI: 10.1111/roie.12662
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/roie.12662
    Download Restriction: no
    File URL: https://libkey.io/10.1111/roie.12662?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
    ---><---

    More about this item

    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:reviec:v:31:y:2023:i:4:p:1246-1270. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    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.