Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes

Mark R. Metcalfe and John C. Beghin

No 18362, Hebrew University of Jerusalem Archive from Hebrew University of Jerusalem

Abstract: The design of trade and environmental policy pays increasing attention to pollution linked to trade liberalization and generated by consumption. We incorporate endogenous (price-responsive) consumption pollution into a dual trade model to assess welfare effects of coordinated trade and environmental piecemeal reform in a small, open and distorted economy. Pollution is generated by production and consumption. Producers control the level of pollution and face incentives to abate both types of pollution. We identify sufficient conditions for welfare-improving reforms of trade and environmental policies. An additional domestic environmental policy instrument must be imposed on exportables because of their supply response to foreign environmental taxes.

Keywords: Environmental Economics and Policy; International Relations/Trade (search for similar items in EconPapers)
Pages: 20
Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/18362/files/wp990209.pdf (application/pdf)

Related works:
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:ags:hebarc:18362

DOI: 10.22004/ag.econ.18362

Access Statistics for this paper

More papers in Hebrew University of Jerusalem Archive from Hebrew University of Jerusalem
Bibliographic data for series maintained by AgEcon Search ().