Climate and international trade policies when emissions affect production possibilities

Christos Kotsogiannis and Alan Woodland

Journal of Environmental Economics and Management, 2013, vol. 66, issue 2, 166-184

Abstract: In this paper, we develop a model of international trade and climate change in which emission discharges arising from production have a feedback effect on national production sectors by impacting upon effective factor endowments. With this context, the objectives are, first, to provide a general characterization of Pareto-efficient climate and trade policies and, second, to examine the possibility – starting from non-Pareto-efficient equilibria – for Pareto-improving environmental policies. We provide conditions under which several particular reforms of carbon taxes are welfare improving.

Keywords: Environmental taxation; International trade; Pareto efficiency; Pareto-improving reforms; Climate change (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:66:y:2013:i:2:p:166-184

DOI: 10.1016/j.jeem.2012.12.005

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