THE NON-NEUTRALITY OF WTO BORDER TAX ADJUSTMENTS FOR ENVIRONMENTAL EXCISE TAXES UNDER IMPERFECT COMPETITION

Steve McCorriston and Ian Sheldon

No 19673, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Border tax adjustments for environmental taxes should leave imports of final goods unchanged. If intermediate and final goods markets are imperfectly competitive though, non-neutrality can result. Under Cournot behavior, an import tax equal to the environmental tax is too high, and under Bertrand, an import subsidy is the appropriate policy.

Keywords: Environmental Economics and Policy; International Relations/Trade (search for similar items in EconPapers)
Pages: 26
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19673

DOI: 10.22004/ag.econ.19673

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