Domestic effects of environnemental policies with transboundary pollution

Michel Cavagnac () and Isabelle Péchoux
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Isabelle Péchoux: UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse

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Abstract: We model environmental interaction among countries as a policy game where governments in each country use quotas or taxes as strategy variables. The environmental policy has a triple role to play: targeting domestic emissions, 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; MULTISCTOR MODEL (search for similar items in EconPapers)
Date: 2010
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Published in Recherches Economiques de Louvain - Louvain economic review, 2010, 76 (1), pp.113-133. ⟨10.3917/rel.761.0113⟩

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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:hal:journl:hal-02653151

DOI: 10.3917/rel.761.0113

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