Trade Liberalization and Environmental Taxation in Federal Systems
Per Fredriksson and
Xenia Matschke
Scandinavian Journal of Economics, 2016, vol. 118, issue 1, 150-167
Abstract:
The literature on trade liberalization and environment has not yet considered federal structures. In this paper, we show how the design of environmental policy in a federal system has implications for the effects of trade reform. Trade liberalization leads to a decline in pollution taxes, regardless of whether pollution taxes are set at the federal (centralized) or local (decentralized) level, and it increases social welfare. The effect under a decentralized system is smaller than if these taxes are set by the federal government, and pollution emissions therefore decline in this case. Moreover, majority bias interacts with trade liberalization if federal taxes are used.
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://hdl.handle.net/10.1111/sjoe.12127 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Trade Liberalization and Environmental Taxation in Federal Systems (2014) 
Working Paper: Trade Liberalization and Environmental Taxation in Federal Systems (2014) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:118:y:2016:i:1:p:150-167
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520
Access Statistics for this article
Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten
More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().