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Effects of transboundary pollution on the mode of international trade of a polluting good

Author

Listed:
  • Kenji Fujiwara

    () (School of Economics, Kwansei Gakuin University)

  • Norimichi Matsueda

    () (School of Economics, Kwansei Gakuin University)

Abstract

This paper looks into potential determinants of the mode of international competition in a polluting good market by analyzing a strategic interaction between two environmentally concerned governments. From the equilibrium outcomes of our game based on an international duopoly model with transboundary pollution, we show how a resulting form of international competition can be influenced by, among other things, the magnitudes of the marginal damage cost and transboundary impact of pollution and also the degree of similarity between the two nations in these aspects.

Suggested Citation

  • Kenji Fujiwara & Norimichi Matsueda, 2007. "Effects of transboundary pollution on the mode of international trade of a polluting good," Discussion Paper Series 30, School of Economics, Kwansei Gakuin University, revised Apr 2007.
  • Handle: RePEc:kgu:wpaper:30
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp30.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
    2. Yordying Supasri & Makoto Tawada, 2007. "Endogenous Timing in a Strategic Trade Policy Game: A Two-Country Oligopoly Model with Multiple Firms," Review of Development Economics, Wiley Blackwell, vol. 11(2), pages 275-290, May.
    3. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
    4. Markusen, James R., 1981. "Trade and the gains from trade with imperfect competition," Journal of International Economics, Elsevier, vol. 11(4), pages 531-551, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    international duopoly; transboundary pollution; gains from trade.;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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