The role of green tariffs in environmental harmonization

Alireza Naghavi

No 200407, Working Papers from School of Economics, University College Dublin

Abstract: This paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and environmental policy. Besides the standard effect of reducing trade and production of dirty goods, green tariffs discourage firms from relocating to pollution havens and induce them to engage in pollution abatement R&D instead. With no concern about pollution among Southern residents, green tariffs can block delocation to serve as the only means of persuading the South to harmonize its environmental standards. When some concern exists, tougher environmental regulations are adopted for a wider range of standards.

Keywords: Environmental standards; Eco-dumping; Multinationals; Location of firms; Pollution abatement R&D; WTO; Green tariffs; International trade--Environmental aspects; Environmental impact charges; Industrial location; International business enterprises--Environmental aspects (search for similar items in EconPapers)
JEL-codes: F13 F18 F23 H23 Q21 R38 (search for similar items in EconPapers)
Date: 2004-04
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:200407

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