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Trade liberalization, consumption externalities and the environment

Author

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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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    File URL: http://www.accessecon.com/pubs/EB/2004/Volume17/EB-04Q20005A.pdf
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    References listed on IDEAS

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    8. James R. MARKUSEN, 2021. "International Externalities And Optimal Tax Structures," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 16, pages 341-355, World Scientific Publishing Co. Pte. Ltd..
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    Citations

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    Cited by:

    1. Jota Ishikawa & Toshihiro Okubo, 2010. "Environmental Standards under International Oligopoly," Global COE Hi-Stat Discussion Paper Series gd10-141, Institute of Economic Research, Hitotsubashi University.
    2. repec:ebl:ecbull:v:17:y:2006:i:5:p:1-9 is not listed on IDEAS
    3. Leonard Wang & Ya-Chin Wang & Lihong Zhao, 2009. "Trade liberalization, intra-industry trade and the environment: competition mode and the order of firms’ moves," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(2), pages 133-144, June.
    4. Shuichi Ohori, 2006. "Environmental tax and trade liberalization in a mixed duopoly," KIER Working Papers 622, Kyoto University, Institute of Economic Research.
    5. 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.
    6. Tai-Liang Chen & Leonard Wang, 2010. "Trade liberalization and transboundary pollution in an international mixed duopoly," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 12(4), pages 187-200, December.

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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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