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A Note On Trade Liberalization, Public Abatement, And Welfare

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  • Takumi Haibara

Abstract

This paper extends Haibara (2006) in order to focus on the welfare consequences of a pollution tax and foreign aid financed for public abatement. The main finding is that environmental protection as a result of increasing a pollution tax by the aid recipient increases the optimal value of foreign aid chosen by the donor and reduces that of a tariff chosen by the recipient. This implies that international environmental cooperation is possible between the donor and the recipient.

Suggested Citation

  • Takumi Haibara, 2006. "A Note On Trade Liberalization, Public Abatement, And Welfare," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 18(3), pages 179-191, November.
    • Handle: RePEc:bla:revurb:v:18:y:2006:i:3:p:179-191
    DOI: 10.1111/j.1467-940X.2006.00120.x
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    File URL: https://doi.org/10.1111/j.1467-940X.2006.00120.x
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    Cited by:

    1. Takumi HAIBARA, 2007. "Environmental Funds, Terms of Trade, and Welfare," GSICS Working Paper Series 15, Graduate School of International Cooperation Studies, Kobe University.

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