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Trade liberalization and transboundary pollution

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  • Yu-Bong Lai
  • Chia-Hsien Hu

Abstract

This article investigates the effects of trade liberalization on transboundary pollution associated with consumption and global welfare in a reciprocal-markets model. We find that a bilateral reduction in tariffs is beneficial to the global environment. Moreover, trade liberalization will enhance global welfare if trans-boundary pollution is sufficiently strong. Copyright Springer Japan 2005

Suggested Citation

  • Yu-Bong Lai & Chia-Hsien Hu, 2005. "Trade liberalization and transboundary pollution," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 7(1), pages 1-14, March.
    • Handle: RePEc:spr:envpol:v:7:y:2005:i:1:p:1-14
    DOI: 10.1007/BF03353942
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    References listed on IDEAS

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    1. Georges Tanguay, 2001. "Strategic Environmental Policies under International Duopolistic Competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(5), pages 793-811, November.
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    5. 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..
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, September.
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    10. Yann Duval & Stephen Hamilton, 2002. "Strategic Environmental Policy and International Trade in Asymmetric Oligopoly Markets," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 9(3), pages 259-271, May.
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    Cited by:

    1. Aronsson, Thomas & Persson, Lars & Sjögren, Tomas, 2006. "Optimal Taxation and Transboundary Externalities - Are Endogenous World Market Prices Important?," Umeå Economic Studies 699, Umeå University, Department of Economics.
    2. Shoji Haruna & Rajeev K. Goel, 2023. "Transboundary Pollution Control with Both Production and Consumption Emissions," CESifo Working Paper Series 10667, CESifo.
    3. Liming Hong & Wei Huang & Sajid Anwar & Xiaofeng Lv, 2023. "North–South asymmetry, unilateral environmental policy and carbon tariffs," Pacific Economic Review, Wiley Blackwell, vol. 28(2), pages 241-266, May.
    4. Aronsson, Thomas & Sjögren, Tomas, 2018. "Optimal Taxation, Redistribution, and Environmental Externalities," International Review of Environmental and Resource Economics, now publishers, vol. 11(3), pages 233-308, August.
    5. Tai-Liang Chen & Leonard Wang, 2010. "Trade liberalization and transboundary pollution in an international mixed duopoly," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 12(4), pages 187-200, December.

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