A Note on Trade Liberalization, Public Abatement and Welfare

Takumi Haibara

No 7, GSICS Working Paper Series from Graduate School of International Cooperation Studies, Kobe University

Abstract: This paper extends Haibara (2006) in order to focus on the welfare consequences of foreign aid and pollution taxes in the context of trade liberalization and public abatement. The main finding is that trade liberalization achieved by a tariff reduction increases, under certain conditions, the optimal value of foreign aid and pollution taxes. This implies that trade liberalization is compatible with environmental protection achieved through pollution taxes and foreign aid, given the existence of public abatement.

Pages: 16 pages
Date: 2006-09
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Citations: View citations in EconPapers (2)

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