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International Trade and the Internalization of Environmental Damages

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  • Karp, Larry
  • Dumas, Christopher F.
  • Koo, Bonwoo
  • Sacheti, Sandeep

Abstract

This paper contributes to the growing effort to synthesize the fields of trade policy and environmental policy. We discuss: the question of whether international trade undercuts unilateral internalization policies: the role of income constraints in environmental policy; and the possibility of using trade policy to achieve environmental objectives. We review estimates of environmental damage in agricultural production and processing, and we summarize current policy measures. We use a static empirical model to estimate the effects of several internalization policies. We show how a dynamic model can be used to simulate the effects of policy over time, for both environmental and economic variables.

Suggested Citation

  • Karp, Larry & Dumas, Christopher F. & Koo, Bonwoo & Sacheti, Sandeep, 1995. "International Trade and the Internalization of Environmental Damages," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8f05x81v, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt8f05x81v
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    References listed on IDEAS

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    1. Karp, Larry, 1992. "Social Welfare in a Common Property Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(2), pages 353-372, May.
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