Agricultural Economics Department
Date of this Version
2015
Citation
Economics Bulletin 35:4 (2015), pp. 2282-2287.
Abstract
We incorporate endogenous (price-responsive) consumption pollution into a dual trade model to assess welfare effects of coordinated trade and environmental piecemeal reform in a small, open and distorted economy. Pollution is generated by production and consumption. Producers control the level of pollution and face incentives to abate both types of pollution. We identify sufficient conditions for welfare-improving reforms of trade and environmental policies. An additional domestic environmental policy instrument must be imposed on exportables because of their supply response to foreign environmental taxes.
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Economic Policy Commons, Environmental Policy Commons, Environmental Studies Commons
Comments
U.S. Government Work