Domestic Effects of Environmental Poclicies with Transboundary Pollution

Michel Cavagnac () and Isabelle Péchoux
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Isabelle Péchoux: Toulouse School of Economics (ARQADE)

No 2010014, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We model environmental interaction among countries as a policy game where government in each country use quotas or taxes as a strategy variables. The environmental policy has a triple role to play : targeting domestic emission, 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.

Keywords: Environmental policy; Transboundary Pollution; Multi-sector Model (search for similar items in EconPapers)
JEL-codes: F18 Q20 Q28 (search for similar items in EconPapers)
Pages: 21
Date: 2010-03-01
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http://sites.uclouvain.be/econ/DP/REL/2010014.pdf (application/pdf)

Related works:
Journal Article: Domestic Effects of Environmental Policies with Transboundary Pollution (2010)
Working Paper: Domestic effects of environmental policies with transboundary pollution (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvre:2010014

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