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On the Effects of Emission Standards as Technical Barriers to Trade: A Foreign Duopoly Case

Author

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  • Tsuyoshi Toshimitsu

    (School of Economics, Kwansei Gakuin University)

Abstract

Employing an environmentally differentiated duopoly model, we analyze how emission standards affect imports, the environment, and social welfare. We show that a strict emission standard is not necessarily import-restrictive, whereas it may possibly degrade the environment. Furthermore, we present evidence that the effect of emission standards on net social surplus depends on the mode of market competition and the degree of marginal social valuation of environmental damage.

Suggested Citation

  • Tsuyoshi Toshimitsu, 2007. "On the Effects of Emission Standards as Technical Barriers to Trade: A Foreign Duopoly Case," Discussion Paper Series 34, School of Economics, Kwansei Gakuin University, revised Jun 2007.
    • Handle: RePEc:kgu:wpaper:34
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    File URL: http://192.218.163.163/RePEc/pdf/kgdp34.pdf
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    References listed on IDEAS

    as
    1. Massimo Motta & Jacques-François Thisse & Massimo Motta & Jacques-François Thisse, 1999. "Minimum quality standard as an environmental policy: domestic and international effects," Chapters, in: Emmanuel Petrakis & Eftichios S. Sartzetakis & Anastasios Xepapadeas (ed.), Environmental Regulation and Market Power, chapter 2, pages 27-46, Edward Elgar Publishing.
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    6. Valletti, Tommaso M, 2000. "Minimum Quality Standards under Cournot Competition," Journal of Regulatory Economics, Springer, vol. 18(3), pages 235-245, November.
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    Cited by:

    1. Toshimitsu, Tsuyoshi, 2008. "On the effects of emission standards as a non-tariff barrier to trade in the case of a foreign Bertrand duopoly: A note," Resource and Energy Economics, Elsevier, vol. 30(4), pages 578-584, December.

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    More about this item

    Keywords

    emission standards; environmentally differentiated duopoly; green market;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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