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International Trade and Global Warming

  • Jota Ishikawa

    (Faculty of Economics, Hitotsubashi University)

  • Kazuharu Kiyono

    (Waseda University, University of Tokyo)

In a non-cooperative strategic environmental regulation, unilateral regulation may yield the so-called "carbon-leakage" and the government choice over the emission taxes and quotas play an important role. Furthermore, the trade and industrial structure of a country critically hinges on the government's policy tools. The paper shows that emission taxes makes the competitive production equilibrium unstable, while emission standards work as "hidden production subsidy" towards emission-intensive industries.

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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2000/2000cf78.pdf
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-78.

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Length: 29 pages
Date of creation: Jun 2000
Date of revision:
Handle: RePEc:tky:fseres:2000cf78
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  1. Chichilnisky, Graciela, 1993. "North-South trade and the dynamics of renewable resources," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 219-248, December.
  2. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, vol. 5(1), pages 15-29, February.
  3. Brian R. Copeland & M. Scott Taylor, 1995. "Trade, Spatial Separation, and the Environment," NBER Working Papers 5242, National Bureau of Economic Research, Inc.
  4. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-37, September.
  5. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
  6. Rodney D. Ludema & Ian Wooton, 1994. "Cross-Border Externalities and Trade Liberalization: The Strategic Control of Pollution," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 950-66, November.
  7. Copeland, Brian R & Taylor, M Scott, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 755-87, August.
  8. James R. Markusen, 1976. "Production and Trade from International Common Property Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 309-19, May.
  9. Markusen, James R, 1975. "Cooperative Control of International Pollution and Common Property Resources," The Quarterly Journal of Economics, MIT Press, vol. 89(4), pages 618-32, November.
  10. Ludema, R.D. & Wooton, I., 1992. "Cross-Border Externalities and trade Liberalization: The Strategic Control of Pollution," UWO Department of Economics Working Papers 9202, University of Western Ontario, Department of Economics.
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