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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: https://da.lib.kobe-u.ac.jp/da/kernel/80600007/
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    References listed on IDEAS

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    6. 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..
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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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