International Trade and Global Warming
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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- Rodney D. Ludema & Ian Wooton, 1994.
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1993_02, Columbia University, Department of Economics.
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5242, National Bureau of Economic Research, Inc.
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- Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
- 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.
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