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On the possibility of attaining environmental and trade objectives simultaneously


  • Amitrajeet Batabyal


With the greening of political debate around the world, large nations — precluded from using trade instruments explicitly — have become aware of the fact that they can manipulate their domestic tax structure to attain environmental and trade objectives simultaneously. In this note we show how such nations can attain these two targets with one instrument. Specifically, we show how to construct dual purpose taxes. We then focus on the empirical determinants of these taxes. Copyright Kluwer Academic Publishers 1994

Suggested Citation

  • Amitrajeet Batabyal, 1994. "On the possibility of attaining environmental and trade objectives simultaneously," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(6), pages 545-553, December.
  • Handle: RePEc:kap:enreec:v:4:y:1994:i:6:p:545-553
    DOI: 10.1007/BF00693045

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    References listed on IDEAS

    1. Amitrajeet A. Batabyal, 1996. "Game models of environmental policy in an open economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(2), pages 185-200.
    2. Amitrajeet A. Batabyal, 1993. "Should Large Developing Countries Pursue Environmental Policy Unilaterally?," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(2), pages 191-202, July.
    3. Johansson,Per-Olov, 1987. "The Economic Theory and Measurement of Environmental Benefits," Cambridge Books, Cambridge University Press, number 9780521348102, March.
    4. Stephen Smith, 1992. "Taxation and the environment: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 13(4), pages 21-57, January.
    5. Batabyal, Amitrajeet A., 1994. "An open economy model of the effects of unilateral environmental policy by a large developing country," Ecological Economics, Elsevier, vol. 10(3), pages 221-232, August.
    6. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-840, Supplemen.
    7. Whalley, John, 1991. "The Interface between Environmental and Trade Policies," Economic Journal, Royal Economic Society, vol. 101(405), pages 180-189, March.
    8. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September.
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    Cited by:

    1. Amitrajeet A. Batabyal & Dug Man Lee, 2008. "Dynamic Environmental Policy In Developing Countries With A Dual Economy," World Scientific Book Chapters,in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 10, pages 165-187 World Scientific Publishing Co. Pte. Ltd..
    2. Zylicz, Tomasz, 2010. "Goals and Principles of Environmental Policy," International Review of Environmental and Resource Economics, now publishers, vol. 3(4), pages 299-334, May.
    3. Batabyal, Amitrajeet A., 1995. "Leading issues in domestic environmental regulation: A review essay," Ecological Economics, Elsevier, vol. 12(1), pages 23-39, January.

    More about this item


    Optimal; taxation; externality; international; trade;


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