Regional versus Multilateral Trade Liberalization, Environmental Taxation and Welfare

Soham Baksi ()

Departmental Working Papers from The University of Winnipeg, Department of Economics

Abstract: We consider strategic trade among identical countries and compare the impacts of multilateral versus regional tariff reduction on equilibrium pollution tax and social welfare. While both forms of trade liberalization increase production and consumption in the tariff-reducing countries, regional trade liberalization also reduces production in a non-participating country and may decrease its consumption. When pollution is local, regional and multilateral trade liberalization have similar impacts in the tariff-reducing countries. In contrast, when pollution is perfectly transboundary, regional (multilateral) trade liberalization (i) weakens (may strengthen) environmental protection in the tariff-reducing countries, and (ii) in the neighbourhood of free trade, may increase (decreases) welfare of the tariff-reducing countries.

JEL-codes: F18 H23 Q58 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011-07
New Economics Papers: this item is included in nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economics.uwinnipeg.ca/RePEc/winwop/2011-03.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to economics.uwinnipeg.ca:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Journal Article: Regional versus Multilateral Trade Liberalization, Environmental Taxation, and Welfare (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:win:winwop:2011-03

Access Statistics for this paper

More papers in Departmental Working Papers from The University of Winnipeg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Soham Baksi ().