IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Trade, Strategic Innovation and Strategic Environmental Policy - a General Analysis

Listed author(s):
  • Ulph, Alistair Mitchell
  • Ulph, David
Registered author(s):

    There has been much debate recently about the nature of environmental policy that will be set by governments concerned about the competitive advantage their industries might obtain in a world of fierce trade competition. Some claim governments will set environmental policies that are too lax, while others claim that policies will be excessively tough (in order to spur firms to innovate). Both these claims relate to the possibility that governments may distort their environmental policies for strategic reasons, and to test these claims requires modelling environmental policy in a world of imperfect competition where there are strategic gains to governments trying to manipulate markets through their environmental policies, and to producers trying to manipulate markets through their R&D decisions.There is now a considerable literature which adapts the literature on strategic international trade to include environmental policy, but this literature suffers from some limitations. Most of the models consider the cases where either only governments act strategically or only producers act strategically. A proper analysis would allow for both sets of agents to act strategically. This is done in Ulph (1993a), and in Ulph (1994). In this paper we provide a more general treatment of the issues. We allow for both governments and producers to act strategically, and for producers' R&D to reduce both costs of production and emissions, but without imposing special functional forms. We show that despite this extra generality the papers by Ulph (1993a) and Ulph (1994) effectively encompass the entire set of qualitative results that can be obtained.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1063.

    in new window

    Date of creation: Nov 1994
    Handle: RePEc:cpr:ceprdp:1063
    Contact details of provider: Postal:
    Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.

    Phone: 44 - 20 - 7183 8801
    Fax: 44 - 20 - 7183 8820

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:1063. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.