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Trade liberalization, consumption externalities and the environment

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  • Yu-Bong Lai

    (Department of Public Finance , National Taipei University)

Abstract

It has conventionally been argued that trade liberalization will degrade the environment of a country that imports a good whose consumption gives rise to pollution. By contrast, this note demonstrates that, if the linkage between the trade and the environmental policies has been taken into consideration, then liberalizing trade in a good that generates consumption-type negative externalities will actually improve the environment of the importing country.

Suggested Citation

  • Yu-Bong Lai, 2004. "Trade liberalization, consumption externalities and the environment," Economics Bulletin, AccessEcon, vol. 17(5), pages 1-9.
  • Handle: RePEc:ebl:ecbull:eb-04q20005
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    References listed on IDEAS

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    6. Günther Schulze, 1999. "International Trade in Art," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(1), pages 109-136, March.
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    Cited by:

    1. Liu, Chih-Chen & Mukherjee, Arijit & Wang, Leonard F.S., 2015. "Horizontal merger under strategic tax policy," Economics Letters, Elsevier, vol. 136(C), pages 184-186.

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    More about this item

    Keywords

    consumption externalities;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • F1 - International Economics - - Trade

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