International trade and the environment : theoretical and policy linkages

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Title: International trade and the environment : theoretical and policy linkages
Authors: Neary, J. Peter
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Date: 23-Jun-2005
Online since: 2009-07-21T15:23:00Z
Abstract: I review and extend three approaches to trade and environmental policies: competitive general equilibrium, oligopoly and monopolistic competition. The first two have surprisingly similar implications; deviation deviations from first best rules are justified only by constraints on policy choice (which motivates what I call a "single dividend" approach to environmental policy), and taxes and emissions standards differ in ways which reflect the Le Chatelier principle. I also show how environmental taxes may lead to a catastrophic relocation of industry in the presence of agglomeration effects, although not necessarily if there is a continuum of industries which differ in pollution intensity. An earlier version was presented as an invited plenary lecture to the European Association for Environmental and Resource Economics Conference, Oslo, 1999.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP00/18
Keywords: Environmental policyInternational trade policyLocation and economic geographyPollution abatementStrategic trade policy
metadata.dc.subject.classification: O13; L13; F12
Subject LCSH: Environmental policy
Commercial policy
Industrial location
Environmental impact charges
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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