Transboundary environmental policy effects: Markets and emission leakages
According to the Environmental Kuznets Curve (EKC) literature, several mechanisms within rich economies, including increased willingness to conduct abatement policies, contribute to reduce environmental problems. Unilateral environmental policies in open economies may affect other countries negatively through trade inter-linkages. A relocation of dirty production and environmental pressure to economies with laxer abatement regimes can be one of many explanations to the apparent EKCs for rich countries. Further, the economic costs of national abatement policies may to some extent be shared with foreigners, both through lower demand for imports and through market share losses for foreign competitors producing cleaner products. In this paper, we quantify the effects of endogenous carbon tax policy in a rich and open economy, Norway, by means of a CGE model. We find that the environmental benefits fall and the economic costs rise when a global rather than a national perspective is employed.
|Date of creation:||Aug 2004|
|Contact details of provider:|| Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway|
Phone: (+47) 21 09 00 00
Fax: +47 - 62 88 55 95
Web page: http://www.ssb.no/en/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Larry E. Jones & Rodolfo E. Manuelli, 2001.
"Endogenous Policy Choice: The Case of Pollution and Growth,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 369-405, July.
- Larry E. Jones & Rodolfo E. Manuelli, 2000. "Endogenous policy choice: the case of pollution and growth," Staff Report 276, Federal Reserve Bank of Minneapolis.
- Beverly Hirtle, 2008. "Credit derivatives and bank credit supply," Staff Reports 276, Federal Reserve Bank of New York.
- Beata K. Smarzynska & Shang-Jin Wei, 2001.
"Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?,"
NBER Working Papers
8465, National Bureau of Economic Research, Inc.
- Javorcik Beata Smarzynska & Wei Shang-Jin, 2003. "Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-34, December.
- Javorcik, Beata & Wei, Shang-Jin, 2001. "Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?," CEPR Discussion Papers 2966, C.E.P.R. Discussion Papers.
- Smarzynska, Beata K., 2001. "Pollution havens and foreign direct investment : dirty secret or popular myth?," Policy Research Working Paper Series 2673, The World Bank.
- Martin Jänicke & Manfred Binder & Harald Mönch, 1997. "‘Dirty industries’: Patterns of change in industrial countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(4), pages 467-491, June.
- Steigum, E.Jr., 1992. "Accounting for Long-Run Effects of Fiscal Policy by Means of Computable Overlapping Generations Models," Papers 05-92, Norwegian School of Economics and Business Administration-.
- Hirtle, Beverly, 2009.
"Credit derivatives and bank credit supply,"
Journal of Financial Intermediation,
Elsevier, vol. 18(2), pages 125-150, April.
- Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
- Heinz Jansen, 2001. "Induced Institutional Change in the Trade and Environment Debate," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 149-172, February.
- Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
- Suri, Vivek & Chapman, Duane, 1998. "Economic growth, trade and energy: implications for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 195-208, May.
When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:384. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (L MaasÃ¸)
If references are entirely missing, you can add them using this form.