Global Pollution: A Heckscher-Ohlin-Samuelson Model of Pigouvian Taxation

Robert Kohn
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Robert Kohn: Southern Illinois University

Eastern Economic Journal, 1991, vol. 17, issue 3, 337-343

Abstract: It could be inferred from the externality literature that, in the absence of lump sum transfers between countries, global Pigouvian taxation would make pollution-intensive countries worse-off. This paper uses the "strong version" of the Heckscher-Ohlin-Samuelson model to demonstrate that a uniform Pigouvian tax shifts the terms-of-trade in favor of the polluting good so that on balance a more polluting country could be better-off and a less polluting country worse-off. This result is consistent with some empirical observations on environmental policy in industrialized countries as compared with that in newly developing countries.

Keywords: Externality; Heckscher Ohlin; Lump Sum Transfer; Pigouvian Tax; Polluting; Pollution; Tax; Taxation; Terms of Trade; Trade (search for similar items in EconPapers)
JEL-codes: F11 H23 Q25 Q28 (search for similar items in EconPapers)
Date: 1991
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:17:y:1991:i:3:p:337-343

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