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Gains from trade in a polluting product in the presence of transboundary stock pollution

Author

Listed:
  • Kenji Fujiwara

    (School of Economics, Kwansei Gakuin University)

  • Norimichi Matsueda

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper examines how the opening of trade affects a country fs welfare in the context of an international polluting duopoly model with transboundary stock pollution. In this framework, we show that trade liberalization can have quite different welfare implications, depending on the mode of international competition and the magnitudes of international transportation coefficients of pollutant emissions and decay rates of pollutant stocks in respective countries, as well as on the values of other environmental and economic variables.

Suggested Citation

  • Kenji Fujiwara & Norimichi Matsueda, 2007. "Gains from trade in a polluting product in the presence of transboundary stock pollution," Discussion Paper Series 32, School of Economics, Kwansei Gakuin University, revised Apr 2007.
    • Handle: RePEc:kgu:wpaper:32
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp32.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
    2. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
    3. James R. MARKUSEN, 2021. "Trade And The Gains From Trade With Imperfect Competition," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 14, pages 303-323, World Scientific Publishing Co. Pte. Ltd..
    4. Barrett, Scott, 1994. "Strategic environmental policy and intrenational trade," Journal of Public Economics, Elsevier, vol. 54(3), pages 325-338, July.
    5. Jagdish N. Bhagwati, 2004. "In Defense of Globalization: It Has a Human Face," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 9-20, November-.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    gains from trade; international duopoly; Cournot-Nash competition; Stackelberg competition; transboundary stock pollution.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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