Liberalizing trade in environmental goods and services

Environmental Economics and Policy Studies - Tập 18 - Trang 499-526 - 2015
Bouwe R. Dijkstra1,2, Anuj J. Mathew3
1GEP and School of Economics, University of Nottingham, Nottingham, UK
2CESifo Munich, Germany
3Government Economic Service (UK), National Offender Management Services (NOMS), Ministry of Justice, London, UK

Tóm tắt

We examine the effects of trade liberalization in environmental goods in a model with one domestic downstream polluting firm and two upstream firms (one domestic, one foreign). The upstream firms offer their technologies to the downstream firm at a flat fee. The domestic government sets the emission tax rate after the outcome of R&D is known. The effect of liberalization on the domestic upstream firm’s R&D incentive is ambiguous. Liberalization usually results in cleaner production, which allows the country to reach higher welfare. However, this increase in welfare is typically achieved at the expense of the environment (a backfire effect).

Tài liệu tham khảo

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