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Environmental Product Standards in North-South Trade

  • ISHIKAWA Jota
  • OKUBO Toshihiro

One channel through which the environment can be damaged is consumption. To protect the environment, various product standards are introduced throughout the world. By using a new economic geography framework, this paper explores the effects of environmental product standards on the environment in a North-South trade model. We examine a situation in which the North unilaterally introduces an environmental product standard. Specifically, those products that do not meet the standard are prohibited from being sold in the North market. We find that such a standard may worsen the environment in the North but improve the environment in the South through firm relocation.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 10011.

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Length: 25 pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:eti:dpaper:10011
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  1. José Moraga-González & Noemi Padrón-Fumero, 2002. "Environmental Policy in a Green Market," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(3), pages 419-447, July.
  2. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January.
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