Environmental standards as strategic outcomes: A Simple model

Rabindra N. Bhattacharya and Rupayan Pal
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Rabindra N. Bhattacharya: CSSSS

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: This paper examines the strategic nature of choice of environmental standards under different degrees of openness of countries. It also compares and contrasts equilibrium environmental standards and levels of pollution, local and global, with the world optimum levels. It shows that, in case of open economies, environmental standards can be strategic substitutes or complements. In equilibrium, countries set higher environmental standards in case of open economies compared to that in case of closed economies. It also shows that equilibrium standards in case of open economies are higher than the world optimum in certain situations. In contrast, countries set lower environmental standards, in equilibrium, than the world optimum in absence of international trade.

Keywords: Environmental standards; strategic choice; openness; world optimum (search for similar items in EconPapers)
JEL-codes: Q56 Q58 (search for similar items in EconPapers)
Pages: 18 pages
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http://www.igidr.ac.in/pdf/publication/WP-2008-028.pdf (application/pdf)

Related works:
Journal Article: Environmental standards as strategic outcomes: A simple model (2010)
Working Paper: Environmental Standards as Strategic Outcomes: A Simple Model (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2008-028

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