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The Rise of Environmentalism, Pollution Taxes and Intra-Industry Trade

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  • Aidt, T.S.

Abstract

Many industrialised countries have experienced an increase in environmental awareness and support to green lobby groups in past decades. This paper develops a political-economy model to investigate to what extent a rise of environmentalism, via the induced change in political power structures, can successfully encourage higher pollution taxes and reduce pollution. The model focuses on special-interest group politics, intra-industry trade and a transnational environmental externality. The main finding is that a rise of environmentalism is not sufficient to protect the environment when pollution is relatively immobile and environmentalists are sufficiently concerned with environmental damage in other countries than their own.

Suggested Citation

  • Aidt, T.S., 2000. "The Rise of Environmentalism, Pollution Taxes and Intra-Industry Trade," Cambridge Working Papers in Economics 0017, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0017
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    Cited by:

    1. Joachim Fünfgelt & Günther G. Schulze, 2011. "Endogenous Environmental Policy when Pollution is Transboundary," Working Paper Series in Economics 196, University of Lüneburg, Institute of Economics.
    2. Joan Canton, 2009. "Environmentalists' Behaviour and Environmental Policies policies," Working Papers 2009.76, Fondazione Eni Enrico Mattei.
    3. Joan Canton, 2007. "Redealing the Cards: How the Presence of an Eco-Industry Modifies the Political Economy of Environmental Policies," Working Papers 2007.25, Fondazione Eni Enrico Mattei.
    4. Per Fredriksson & Eric Neumayer & Gergely Ujhelyi, 2007. "Kyoto Protocol cooperation: Does government corruption facilitate environmental lobbying?," Public Choice, Springer, vol. 133(1), pages 231-251, October.
    5. Cristina Grazia & François Gusdorf & Abdelhakim Hammoudi, 2014. "Climate Change, Heterogeneities, and Stability of International Fiscal Harmonization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(4), pages 579-603, August.

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    More about this item

    Keywords

    Transnational externalities; pollution taxes; lobby groups and trade;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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