On the Effects of Emission Standards as Technical Barriers to Trade: A Foreign Duopoly Case
Employing an environmentally differentiated duopoly model, we analyze how emission standards affect imports, the environment, and social welfare. We show that a strict emission standard is not necessarily import-restrictive, whereas it may possibly degrade the environment. Furthermore, we present evidence that the effect of emission standards on net social surplus depends on the mode of market competition and the degree of marginal social valuation of environmental damage.
|Date of creation:||Jun 2007|
|Date of revision:||Jun 2007|
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