| Authors |
Pantelaiou, I., Hatzipanayotou, P., Konstantinou, P. and Xepapadeas, A. |
| Title |
Can Cleaner Environment Promote International Trade? Environmental Policies as Export Promoting Mechanisms |
| Abstract |
We develop an international duopoly model where the firms export their output to a world-market. Production uses a depletable resource, and it generates pollution which affects negatively households welfare. Governments control pollution using (i) an emission tax, the revenue from which finances public pollution abatement, (ii) a revenue-recycling tax, refunded to the emitting firm contingent on reducing the cost of private pollution abatement, and (iii) an environmentally related standard. We evaluate them as (i) export promoting Non-Tariff Measures (NTMs) measuers, and (ii) resource conserving/depleting and welfare enhancing policy instruments. Our results indicate that, by and large (i) public pollution abatement works as an export-promoting but resource depleting mechanism, which under certain conditions can enhance welfare; (ii) revenue recycling works as an export-contracting but resource preserving mechanism, and (iii) environmental standards relative to public abatement work as an export-contracting but resource preserving mechanism, but relative to revenue recycling work in the opposite direction. |
| Creation Date |
2018-02-00 |
| Keywords |
Emission taxation, Public Pollution Abatement, Recycling tax revenues, Environmental Related Standards, International Trade. |
| Classification JEL |
F18, H23, Q58 |
| File |
Environmental.Policies.as.Export.Promoting.Mechanisms.pdf (339744 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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