| Authors |
Antoniou, F., Hatzipanayotou, P. and Tsakiris, N. |
| Title |
Regulatory Stringency and Emission Leakage Mitigation |
| Abstract |
We construct a two-country trade model where emissions are an input in production and generate cross-border pollution. We examine the strategic incentives of an active regulator that sets a binding level of emissions in production. We show that, in the presence of terms of trade and emission leakage strategic motives, tighter regulation can mitigate emission leakage, reduce global pollution, and improve a country's welfare. This result and the corresponding policy implications depend on the relative magnitude of emissions intensities of goods between sectors and on their relationship in production and consumption. |
| Creation Date |
2023-01-13 |
| Keywords |
Environmental Regulation, International Trade, Emission Leakage, Cross-border Pollution |
| Classification JEL |
F18, H23, Q54 |
| File |
2023.Regulatory.Stringency.pdf (286682 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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