Domestic Effects of Environmental Policies with Transboundary Pollution

Michel Cavagnac () and Isabelle Péchoux

Recherches économiques de Louvain, 2010, vol. 76, issue 1, 113-134

Abstract: We model environmental interaction among countries as a policy game where governments in each country use quotas or taxes as strategy variables. The environmental policy has a triple role to play: targeting domestic emissions, providing strategic advantages for domestic firms and targeting imported pollution. Using a multi-sector economic model, we show that, besides the well-known inefficiencies arising at the international level, the environmental policy may lead to purely domestic inefficiencies. JEL classification : F18 ; Q20 ; Q28.

Keywords: environmental policy; transboundary pollution; multi-sector model (search for similar items in EconPapers)
JEL-codes: Q28 (search for similar items in EconPapers)
Date: 2010
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Related works:
Working Paper: Domestic Effects of Environmental Poclicies with Transboundary Pollution (2010)
Working Paper: Domestic effects of environnemental policies with transboundary pollution (2010)
Working Paper: Domestic effects of environmental policies with transboundary pollution (2007)
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