By Laura Marsiliani, Michael Rauscher, Cees Withagen
13 papers addressing present concerns in overseas environmental economics. They research the connection among exchange liberalization and environmental coverage; the impression of exchange liberalization on environmental caliber; examine difficulties of dedication confronted via regulating professionals; supply new insights into the Porter speculation; current empirical examine regarding foreign competitiveness and placement of polluting vegetation; deal with overseas environmental agreements, with a unique specialize in source of revenue distribution and the political-economy size, tradable emission discount rates, and the quantitative effect of alternate liberalization and the implementation of the Kyoto Protocol on carbon leakage.The papers during this quantity express that even after ten years of severe study either on alternate and the surroundings, and on transfrontier pollutants and overseas environmental agreements, study during this quarter nonetheless produces new, suitable, and thought-provoking principles and effects.
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Extra resources for Environmental Economics and the International Economy (Economy & Environment)
Sample text
Furthermore, both North and South may gain or lose from free trade in terms of aggregate welfare. 1. INTRODUCTION Globalization of economic activity together with increasing environmental consciousness has generated a heated debate on the linkages between international trade and environment, particularly in the context of the North-South economic divide. The environmentalists claim that freer trade accentuates environmental problems, because of larger scale of economic activity resulting from trade.
1 Autarky We consider an economy composed of two countries, denoted by i = 1,2 . In country i , consumers have a demand for a consumption good given by Thus, demand elasticities and intercepts3 are equal across markets. Market sizes are different and their sum is normalized to 1. We assume that 3 Parameter a is assumed to be sufficiently large to avoid corner solutions. 36 ISABELLE PÉCHOUX, JÉRÔME POUYET so that country 1 is the 'large' country and country 2 the 'small' one (with market size Under autarky, consumers' net surplus in country i is then given by4 In country i a regulated firm produces the good to satisfy both domestic consumption and export if any.
2) which results in: This expression reveals that it is impossible for real wages to rise if tariffs are swapped for higher pollution taxes. If pollution taxes increase and the tariff falls, the last term in parentheses is negative and therefore the entire right-hand side is negative. Hence, we conclude that the double dividend fails as soon as the import tariff falls on good that is also produced in a domestic 'import-competing' sector. Note that this result holds independently of the structure of domestic or foreign demand (and thus independently of the elasticity of foreign demand).
