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On trade liberalization and transboundary pollution

Baksi,S.
Ray Chaudhuri,A.
Abstract
We examine the impact of freer trade on equilibrium pollution tax and welfare when markets are imperfectly competitive and pollution is transboundary. In the symmetric case, bilateral tariff reduction (i) strengthens environmental protection if and only if pollution is sufficiently harmful, and (ii) decreases welfare in the neighbourhood of free trade.
Description
Appeared earlier as CentER DP 2008-78 and TILEC DP 2008-033 (rt)
Date
2009
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Research Projects
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Citation
Baksi, S & Ray Chaudhuri, A 2009, 'On trade liberalization and transboundary pollution', Economics Bulletin, vol. 29, no. 4, pp. 2605-2612. < http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P13.pdf >
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