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A Note on Trade Liberalization, Public Abatement and Welfare

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  • Takumi HAIBARA

Abstract

This paper extends Haibara (2006) in order to focus on the welfare consequences of foreign aid and pollution taxes in the context of trade liberalization and public abatement. The main finding is that trade liberalization achieved by a tariff reduction increases, under certain conditions, the optimal value of foreign aid and pollution taxes. This implies that trade liberalization is compatible with environmental protection achieved through pollution taxes and foreign aid, given the existence of public abatement.

Suggested Citation

  • Takumi HAIBARA, 2006. "A Note on Trade Liberalization, Public Abatement and Welfare," GSICS Working Paper Series 7, Graduate School of International Cooperation Studies, Kobe University.
    • Handle: RePEc:kcs:wpaper:7
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    File URL: http://www.research.kobe-u.ac.jp/gsics-publication/gwps/2006-07.pdf
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    References listed on IDEAS

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    1. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    2. James R. MARKUSEN, 2021. "International Externalities And Optimal Tax Structures," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 16, pages 341-355, World Scientific Publishing Co. Pte. Ltd..
    3. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Can cross–border pollution reduce pollution?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(4), pages 805-818, November.
    4. Costas Hadjiyiannis & Panos Hatzipanayotou & Michael S. Michael, 2004. "Pollution and Capital Tax Competition within a Regional Block," CESifo Working Paper Series 1208, CESifo.
    5. Merrifield, John D., 1988. "The impact of selected abatement strategies on transnational pollution, the terms of trade, and factor rewards: A general equilibrium approach," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 259-284, September.
    6. Costas Hadjiyiannis & Panos Hatzipanayotou & Michael S. Michael, 2002. "Optimal Tax Policies with Private-Public Clean-Up, Cross-Border Pollution and Capital Mobility," CESifo Working Paper Series 822, CESifo.
    7. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    8. Takumi Haibara, 2006. "Trade Liberalization, Public Abatement, And Welfare," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 18(1), pages 11-24, March.
    9. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    10. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2005. "Reforms of Environmental Policies in the Presence of Cross‐border Pollution and Public–Private Clean‐up," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 315-333, June.
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    Cited by:

    1. Takumi HAIBARA, 2006. "Environmental Funds, Public Abatement and Welfare," GSICS Working Paper Series 8, Graduate School of International Cooperation Studies, Kobe University.
    2. Takumi HAIBARA, 2007. "Environmental Funds, Terms of Trade, and Welfare," GSICS Working Paper Series 15, Graduate School of International Cooperation Studies, Kobe University.

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