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Tariff and environmental policies with product standards

Author

Listed:
  • Chi-Chur Chao

    (Graduate School of Business - Deakin University [Burwood])

  • Jean-Pierre Laffargue

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Pasquale M Sgro

    (Deakin University [Burwood])

Abstract

For a small open economy with consumption-based pollution emissions, the first-best optimal policy prescription is free trade along with a Pigouvian tax on emissions. Therefore, a package of coordinated tax reform by replacing tariffs with emission taxes can lower pollution emissions and increase market access and hence improve residents' welfare and government revenue, as long as the initial tariffs are relatively high. Numerical simulations confirm the results obtained. [ABSTRACT FROM AUTHOR]

Suggested Citation

  • Chi-Chur Chao & Jean-Pierre Laffargue & Pasquale M Sgro, 2012. "Tariff and environmental policies with product standards," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00820794, HAL.
    • Handle: RePEc:hal:cesptp:hal-00820794
    DOI: 10.1111/j.1540-5982.2012.01723.x
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    References listed on IDEAS

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    Cited by:

    1. Lai, Yu-Bong, 2024. "Policy linkages, country size, and international capital distribution," Journal of Environmental Economics and Management, Elsevier, vol. 123(C).
    2. Kim, Seung-Leul & Lee, Sang-Ho, 2021. "Optimal tariffs with emissions taxes under non-restrictive two-part licensing strategies by a foreign eco-competitor," MPRA Paper 108496, University Library of Munich, Germany.
    3. Michael S. Michael & Panos Hatzipanayotou & Nikos Tsakiris, 2023. "Can small economies act strategically? The case of consumption pollution and non-tradable goods," University of Cyprus Working Papers in Economics 02-2023, University of Cyprus Department of Economics.
    4. Takumi Haibara, 2023. "Three tax reforms with and without public pollution abatement," Economics Bulletin, AccessEcon, vol. 43(1), pages 574-582.
    5. Fabio Antoniou & Panos Hatzipanayotou & Michael S. Michael & Nikos Tsakiris, 2022. "Tax competition in the presence of environmental spillovers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(3), pages 600-626, June.
    6. Nikos Tsakiris & Michael Michael & Panos Hatzipanayotou, 2014. "Asymmetric Tax Policy Responses in Large Economies With Cross-Border Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(4), pages 563-578, August.
    7. Fabio Antoniou & Panos Hatzipanayotou & Michael S. Michael & Nikos Tsakiris, 2016. "On the Efficiency of Destination and Origin Commodity Taxation in the Presence of Consumption Generated Cross-Border Pollution," CESifo Working Paper Series 6221, CESifo.
    8. Fabio Antoniou & Panos Hatzipanayotou & Michael S. Michael & Nikos Tsakiris, 2019. "On the Principles of Commodity Taxation under Interregional Externalities," University of Cyprus Working Papers in Economics 03-2019, University of Cyprus Department of Economics.

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    More about this item

    Keywords

    environmental policy; consumption; pollution; free trade; tax reform; welfare economics; government revenue;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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