Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes
The design of trade and environmental policy pays increasing attention to consumption-induced pollution linked to trade liberalization. The authors of this paper incorporate endogenous consumption pollution into a dual trade model to assess the welfare elects of coordinated trade and environmental piece-meal reform in a small, open and distorted economy They identify sufficient conditions for welfare-improving reforms of trade and environmental policies. They also discuss briefly the implications of using tradable permits instead of taxes.
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- Arja H. Turunen-Red & Alan D. Woodland, 2004. "Multilateral Reforms of Trade and Environmental Policy," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 321-336, 08.
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