Tariff and Environmental Tax Reforms in a Polluted Small Open Economy with Public Production
This paper presents a general-equilibrium model of a small open economy, in which the production process of private goods generates pollution, and the government finances the production cost of a public consumption good through revenue from tariffs and pollution taxes. Since a variety of distortions, including pollution, trade protection, and public production, exist, a change in tariffs and/or environmental taxes affects economic welfare, both directly and indirectly. Taking these effects into account, the conditions for welfare-enhancing, piecemeal policy reform are derived.
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Volume (Year): 66 (2010)
Issue (Month): 4 (December)
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References listed on IDEAS
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- Abe, Kenzo, 1995. "The Target Rates of Tariff and Tax Reform," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(4), pages 875-885, November.
- John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1997.
"Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 30(2), pages 442-455, May.
- John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," OECD Development Centre Working Papers 99, OECD Publishing.
- Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
- Abe, Kenzo, 1992. "Tariff Reform in a Small Open Economy with Public Production," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 209-222, February. Full references (including those not matched with items on IDEAS)
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