Can R&D-Inducing Green Tariffs Replace International Environmental Regulations?

Alireza Naghavi

No 2006.92, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and the environment. It shows that tariffs levied on polluting goods could result in less global pollution than harmonization of environmental standards by inducing more pollution abatement R&D, generating lower unit emissions from production, and reducing competition. Green tariffs reduce pollution by (1) shifting production to the region where environmental standards are respected, (2) strategically inducing abatement R&D by the Northern firm by granting the latter a higher market share, (3) creating abatement R&D by deterring delocation.

Keywords: Environmental Standards; Multinationals; Location of Firms; Pollution Abatement R&D; Green Tariffs (search for similar items in EconPapers)
JEL-codes: F13 F18 F23 H23 Q21 R38 (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-ino, nep-int and nep-pbe
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Related works:
Journal Article: Can R&D-inducing green tariffs replace international environmental regulations? (2007)
Working Paper: Can R&D-Inducing Green Tariffs Replace International Environmental Regulations? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2006.92

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