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Domestic effects of environmental policies with transboundary pollution

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  • CAVAGNAC Michel

    (LERNA, TSE)

  • PECHOUX Isabelle

Abstract

We model environmental interaction among countries as a policy game where governments in each country use quotas or taxes as strategy variables. The environmental policy has a triple role to play: targeting domestic emissions, providing strategic advantages for domestic firms and targeting imported pollution. Using a multi-sector economic model, we show that, besides the well-known inefficiencies arising at the international level, the environmental policy may lead to purely domestic inefficiencies. JEL classification : F18 ; Q20 ; Q28.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • CAVAGNAC Michel & PECHOUX Isabelle, 2007. "Domestic effects of environmental policies with transboundary pollution," LERNA Working Papers 07.07.228, LERNA, University of Toulouse.
    • Handle: RePEc:ler:wpaper:07.07.228
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    as
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    More about this item

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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