IDEAS home Printed from https://ideas.repec.org/a/ags/aaeatr/324806.html
   My bibliography  Save this article

Coordinating Environmental and Trade Policy to Protect the Environment: A Pedagogical Approach

Author

Listed:
  • Hultberg, Patrik T.
  • Udayanganie, Darshana

Abstract

Establishing appropriate environmental and trade policies is an important issue in today’s globalized economy, and yet there is no comprehensive analysis in most environmental economics and international trade undergraduate textbooks of how such policies are interrelated. The purpose of this article is to provide a straightforward framework for teaching students how environmental and trade policies are indeed interconnected, utilizing the standard tools of intermediate microeconomics. Focusing on a single competitive market and (nonstrategic) welfare maximizing government, optimal environmental and trade policies are derived and explored. The framework is used to address several circumstances, including negative production and consumption externalities, small and large countries, and transboundary pollution.

Suggested Citation

  • Hultberg, Patrik T. & Udayanganie, Darshana, 2022. "Coordinating Environmental and Trade Policy to Protect the Environment: A Pedagogical Approach," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(4), September.
  • Handle: RePEc:ags:aaeatr:324806
    DOI: 10.22004/ag.econ.324806
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/324806/files/AETR_2021_0018RRV4I4_v1.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.324806?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. St�phanie Monjon & Philippe Quirion, 2011. "A border adjustment for the EU ETS: reconciling WTO rules and capacity to tackle carbon leakage," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1212-1225, September.
    2. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
    3. Daniel Esty, 1994. "Greening the GATT: Trade, Environment, and the Future," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 40, April.
    4. Lynne Y. Lewis, 2011. "A Virtual Field Trip to the Real World of Cap and Trade: Environmental Economics and the EPA SO 2 Allowance Auction," The Journal of Economic Education, Taylor & Francis Journals, vol. 42(4), pages 354-365, October.
    5. Britten-Jones, Mark & Nettle, Richard S & Anderson, Kym, 1987. "On Optimal Second-Best Trade Intervention in the Presence of a Domestic Divergence," Australian Economic Papers, Wiley Blackwell, vol. 26(49), pages 332-336, December.
    6. repec:dau:papers:123456789/7940 is not listed on IDEAS
    7. repec:dau:papers:123456789/10122 is not listed on IDEAS
    8. Daniel C. Esty, 2001. "Bridging the Trade-Environment Divide," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 113-130, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jayson Beckman & Maros Ivanic & Jeremy Jelliffe & Shawn Arita, 2022. "Adopt or not adopt? Mirror clauses and the European Green Deal," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 2014-2033, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    2. Tariku, Lamessa, 2015. "The Impact of Trade Liberalization on Air Pollution: In Case of Ethiopia," MPRA Paper 84619, University Library of Munich, Germany.
    3. Runge, C. Ford, 2001. "A Global Environment Organization (Geo) And The World Trading System: Prospects And Problems," Working Papers 14448, University of Minnesota, Center for International Food and Agricultural Policy.
    4. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 204, Economics Division, School of Social Sciences, University of Southampton.
    5. Frankel, Jeffrey, 2008. "Global Environmental Policy and Global Trade Policy," Working Paper Series rwp08-058, Harvard University, John F. Kennedy School of Government.
    6. Rauscher, Michael, 2001. "International trade, foreign investment, and the environment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
    7. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
    8. Yu-Bong Lai, 2004. "Trade liberalization, consumption externalities and the environment," Economics Bulletin, AccessEcon, vol. 17(5), pages 1-9.
    9. Anetta Caplanova & Keith Willett, 2019. "Emission Discharge Permit Trading and Persistant Air Pollutants (A Common Pool Market Application with Health Risk Specifications)," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(1), pages 19-38, February.
    10. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    11. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    12. Jha, Raghbendra & Murthy, K. V. Bhanu, 2003. "An inverse global environmental Kuznets curve," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 352-368, June.
    13. Gonzalez, Stéphane & Rostom, Fatma Zahra, 2022. "Sharing the global outcomes of finite natural resource exploitation: A dynamic coalitional stability perspective," Mathematical Social Sciences, Elsevier, vol. 119(C), pages 1-10.
    14. Kohn, Robert E., 2003. "Environmental standards as barriers to trade," Socio-Economic Planning Sciences, Elsevier, vol. 37(3), pages 203-214, September.
    15. Meunier, Guy & Ponssard, Jean-Pierre & Quirion, Philippe, 2014. "Carbon leakage and capacity-based allocations: Is the EU right?," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 262-279.
    16. Edward J. Balistreri & Daniel T. Kaffine & Hidemichi Yonezawa, 2019. "Optimal Environmental Border Adjustments Under the General Agreement on Tariffs and Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1037-1075, November.
    17. Lindsey, Patricia J. & Bohman, Mary, 1997. "Environmental Policy Harmonization," Proceedings of the 3rd Agricultural and Food Policy Systems Information Workshop, 1997: Harmonization\Convergence\Compatibility in Agriculture and Agri-Food Policy: Canada, United States and Mexico 16915, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    18. Vasavada, Utpal & Saint-Louis, Robert & Debailleul, Guy, 1990. "The Conflict Between Trade Policy and Environmental Policy in Agriculture," 1990: The Environment, Government Policies, and International Trade Meeting, December 1990, San Diego, CA 50879, International Agricultural Trade Research Consortium.
    19. Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 42-70, February.
    20. Josh Ederington & Jenny Minier, 2003. "Is environmental policy a secondary trade barrier? An empirical analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(1), pages 137-154, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaeatr:324806. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.