Tariff reforms in the presence of pollution

Nikolaos Vlassis

Agricultural Economics Review, 2016, vol. 17, issue 2

Abstract: A number of countries are considering, mainly as part of their obligations under current treaties, domestic actions to internalize the social cost of pollution. One of the major ob- stacles, however, in those countries is the fear of jeopardizing their competitive position in world markets. A policy that has been repeatedly proposed to deal with this challenge is a tariff mitigating any distortions arising from cross-country differences in environmental pol- icy. Such unilateral actions are the focus of this paper. It is argued that if a country set its pollution taxes optimally, cooperatively or non-cooperatively, there exist unilateral tariff reforms that improve global welfare

Keywords: Environmental Economics and Policy; International Relations/Trade; Public Economics (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aergaa:262438

DOI: 10.22004/ag.econ.262438

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