Asymmetric Tax Policy Responses in Large Economies With Cross-Border Pollution
Date
2014Source
Environmental and Resource EconomicsVolume
58Pages
563-578Google Scholar check
Keyword(s):
Metadata
Show full item recordAbstract
We build a model of cross-border pollution between two large open economies, one importing the polluting good and the other exporting it, and derive their non-cooperative trade and environmental tax policies. We show among other things, that (1) in response to a bilateral reduction in trade taxes by both countries, the former country's optimal policy is to lower its Nash emissions tax while the latter's is to raise it, and (2) in response to an increase in emissions tax rates by both countries, the former country's optimal reaction is to raise its Nash import tariff, while the latter's is to reduce its Nash export tax. That is, in the present context, freer trade leads the exporting country to adopt stricter while the importing country laxer environmental tax policies. © 2013 Springer Science+Business Media Dordrecht.
Collections
Cite as
Related items
Showing items related by title, author, creator and subject.
-
Article
Regular Education as a Tool of Countercyclical Employment Policy Nordic Economic Policy Review
Pissarides, Christopher A. (2011)
-
Book
Feeding-in" and "Feeding-out" and National Policies on Immigrants and Ethnic Minorities: a study of National Policies
Pashardes, Panos (2006)
-
Book
Feeding in" and "Feeding out": the extent of synergies between growth and job policies and social inclusion policies across the EU
Pashardes, Panos (2007)