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One for All, All for One? Unilateral Policy Choices Reconsidered

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  • Takumi Haibara

    (Aichi University)

Abstract

Global pollution emissions can, and, may, hinder bilateral trade liberalization. Recognizing the urgency of responding to climate change and trade protections, this paper presents a policy rule unilaterally introduced by “large†nations. I call it the environmental preservation rule. Specifically, domestic taxes and trade taxes are used together to contain the increase in Home consumption pollution. Doing so reduces pollution emissions abroad while increasing market access. This rule helps countries exit from excessive regulation and is good for the climate.

Suggested Citation

  • Takumi Haibara, 2021. "One for All, All for One? Unilateral Policy Choices Reconsidered," Economics Bulletin, AccessEcon, vol. 41(1), pages 161-166.
    • Handle: RePEc:ebl:ecbull:eb-20-00530
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    References listed on IDEAS

    as
    1. Josh Ederington, 2010. "Should Trade Agreements Include Environmental Policy?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 84-102, Winter.
    2. Levinson, Arik, 2017. "Environmental protectionism: The case of CAFE," Economics Letters, Elsevier, vol. 160(C), pages 20-23.
    3. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    4. Haibara, Takumi, 2012. "Alternative approaches to tax reform," Economics Letters, Elsevier, vol. 117(2), pages 408-410.
    5. Kreickemeier, Udo & Raimondos-Møller, Pascalis, 2008. "Tari[ff]-tax reforms and market access," Journal of Development Economics, Elsevier, vol. 87(1), pages 85-91, August.
    6. James R. MARKUSEN, 2021. "International Externalities And Optimal Tax Structures," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 16, pages 341-355, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Takumi Haibara, 2023. "Three tax reforms with and without public pollution abatement," Economics Bulletin, AccessEcon, vol. 43(1), pages 574-582.

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    More about this item

    Keywords

    Global pollution externalities; a market access preservation rule; an environmental preservation rule;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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