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Global environmental standards with heterogeneous polluters

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  • Levy, Ting
  • Dinopoulos, Elias

Abstract

We introduce environmental quality standards into a model of intra-industry trade with heterogeneous polluters. Pollution stems from consumption and pollution intensity declines with product-specific environmental quality. We formally analyze the effects of global environmental standards and three trade-liberalization policies. When consumer preferences for environmental quality are weak (strong) relative to the environmental quality elasticity of production costs, firms discovering dirtier (cleaner) products are more profitable and engage in exporting. More stringent environmental standards or trade liberalization policies enhance per-capita real consumption. The effects of these policies on global pollution and welfare are ambiguous.

Suggested Citation

  • Levy, Ting & Dinopoulos, Elias, 2016. "Global environmental standards with heterogeneous polluters," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 482-498.
    • Handle: RePEc:eee:reveco:v:43:y:2016:i:c:p:482-498
    DOI: 10.1016/j.iref.2016.01.009
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    Cited by:

    1. Daniel E. Ufua & Odunayo P. Salau & Joseph A. Dada & Mosunmola O. Adeyeye, 2020. "Application of Systems Approach to Achieving Cleaner and Sustainable Environment: A study of Waste Dumping Issue on Idiroko Road, Ota, Ogun State, Nigeria," Working Papers of the African Governance and Development Institute. 20/007, African Governance and Development Institute..
    2. Daniel E. Ufua & Odunayo P. Salau & Joseph A. Dada & Mosunmola O. Adeyeye, 2020. "Application of Systems Approach to Achieving Cleaner and Sustainable Environment: A study of Waste Dumping Issue on Idiroko Road, Ota, Ogun State, Nigeria," Research Africa Network Working Papers 20/007, Research Africa Network (RAN).
    3. Krishnendra Meena, 2021. "Environmental Standards in the BRICS: An Analysis of Vehicular Pollution," International Studies, , vol. 58(3), pages 397-408, July.
    4. Daniel E. Ufua & Odunayo P. Salau & Joseph A. Dada & Mosunmola O. Adeyeye, 2020. "Application of Systems Approach to Achieving Cleaner and Sustainable Environment: A study of Waste Dumping Issue on Idiroko Road, Ota, Ogun State, Nigeria," Working Papers 20/007, European Xtramile Centre of African Studies (EXCAS).
    5. Hamaguchi, Yoshihiro, 2023. "Environmental tax evasion as a determinant of the Porter and pollution haven hypotheses in a corrupt political system," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 610-633.

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    More about this item

    Keywords

    Intra-industry trade; Firm heterogeneity; Environmental standards; Environmental R&D;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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