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Export Processing Zones and Environmental Policy


  • Yasuyuki Sugiyama

    () (Graduate School of Economics, Osaka University)


In this paper, we consider the impact of establishing export processing zones on environmental policy. The model assumes that aggregate pollution is regulated by a quota so as to maximize domestic welfare, and the pollution target is implemented with a marketable permit system. We show that the emission quota may be strengthened with the formation of the zone even if firms located in the export processing zone have cleaner technology than those in the domestic zone.

Suggested Citation

  • Yasuyuki Sugiyama, 2007. "Export Processing Zones and Environmental Policy," Economics Bulletin, AccessEcon, vol. 6(20), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-07f10006

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    References listed on IDEAS

    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Khan, M. Ali & Naqvi, Syed Nawab Haider, 1983. "Capital markets and urban unemployment," Journal of International Economics, Elsevier, vol. 15(3-4), pages 367-385, November.
    3. Michael, Michael S & van Marrewijk, Charles, 1998. "Tied to Capital or Untied Foreign Aid?," Review of Development Economics, Wiley Blackwell, vol. 2(1), pages 61-75, February.
    4. Takumi Naito, 2003. "Pareto-improving Untied Aid with Environmental Externalities," Journal of Economics, Springer, vol. 80(2), pages 161-169, October.
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    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development


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