Trade liberalization, consumption externalities and the environment

Yu-Bong Lai ()

Economics Bulletin, 2004, vol. 17, issue 5, pages 1-9

Abstract: It has conventionally been argued that trade liberalization will degrade the environment of a country that imports a good whose consumption gives rise to pollution. By contrast, this note demonstrates that, if the linkage between the trade and the environmental policies has been taken into consideration, then liberalizing trade in a good that generates consumption-type negative externalities will actually improve the environment of the importing country.

Keywords: consumption; externalities (search for similar items in EconPapers)
JEL-codes: Q2 F1 (search for similar items in EconPapers)
Date: 2004
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