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Environmental Product Standards in North-South Trade

Jota Ishikawa and Toshihiro Okubo ()

No DP2010-03, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: One channel through which environment is damaged is consumption. To protect environment, various product standards are introduced all over the world. By using a new economic geography framework, this paper explores the effects of environmental product standards on environment in a North-South trade model. We examine a situation in which North unilaterally introduces an environmental product standard. Specifically, those products that do not meet the standard are not allowed to be sold in the North market. We find that such a standard may worsen North environment but improve South environment through firm relocation.

Keywords: Environmental product standards; Compliance costs; Firm location; Footloose capital model (search for similar items in EconPapers)
JEL-codes: F18 Q54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env and nep-int
Date: 2010-02
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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2010-03.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Environmental Product Standards in North–South Trade (2011) Downloads
Working Paper: Environmental Product Standards in North-South Trade (2010) Downloads
Working Paper: Environmental Product Standards in North-South Trade (2010) Downloads
Working Paper: Environmental Product Standards in North-South Trade (2010) Downloads
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