Tariff reforms in the presence of pollution

A number of countries are considering, mainly as part of their obligations under current treaties, domestic actions to internalize the social cost of pollution. One of the major ob- stacles, however, in those countries is the fear of jeopardizing their competitive position in world markets. A policy that has been repeatedly proposed to deal with this challenge is a tariff mitigating any distortions arising from cross-country differences in environmental pol- icy. Such unilateral actions are the focus of this paper. It is argued that if a country set its pollution taxes optimally, cooperatively or non-cooperatively, there exist unilateral tariff reforms that improve global welfare


Issue Date:
Jun 02 2016
Publication Type:
Journal Article
ISSN:
1109-2580
Language:
English
Published in:
Agricultural Economics Review, Volume 17, Issue 2
Page range:
23-37
JEL Codes:
H20; F18




 Record created 2017-08-25, last modified 2017-08-25

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