The Rise of Environmentalism, Pollution Taxes and Intra-Industry Trade

Toke Aidt

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: Many industrialised countries have experienced an increase in environmental awareness and support to green lobby groups in past decades. This paper develops a political-economy model to investigate to what extent a rise of environmentalism, via the induced change in political power structures, can successfully encourage higher pollution taxes and reduce pollution. The model focuses on special-interest group politics, intra-industry trade and a transnational environmental externality. The main finding is that a rise of environmentalism is not sufficient to protect the environment when pollution is relatively immobile and environmentalists are sufficiently concerned with environmental damage in other countries than their own.

Keywords: Transnational externalities; pollution taxes; lobby groups and trade (search for similar items in EconPapers)
JEL-codes: D72 F12 Q28 (search for similar items in EconPapers)
Date: 2000-11
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The rise of environmentalism, pollution taxes and intra-industry trade (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:0017

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