IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/49167.html
   My bibliography  Save this paper

Intra-Industry Trade in Dirty Goods and Environmental Policies

Author

Listed:
  • Sen, Anindita

Abstract

In this paper we study the effect of intra-industry trade in an environmental-quality differentiated good on the pollution level in a two-country framework when there are strategic interactions between the firms in the two countries. The pro-competitive effect of intra-industry trade expands the scale of production and, therefore, increases pollution in both the countries. Effect on the strategic choice of environmental qualities of the good is, on the other hand, asymmetric for the two producers. Impact of environmental policies like pollution content production tax and tariff on trade and pollution levels are also studied. .

Suggested Citation

  • Sen, Anindita, 2013. "Intra-Industry Trade in Dirty Goods and Environmental Policies," MPRA Paper 49167, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49167
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/49167/1/MPRA_paper_49167.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Sen, Anindita & Acharyya, Rajat, 2012. "Environmental standard and employment: impact of productivity effect," Environment and Development Economics, Cambridge University Press, vol. 17(2), pages 207-225, April.
    3. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
    4. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
    5. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 755-787.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Toke Aidt, 2004. "The rise of environmentalism, pollution taxes and intra-industry trade," Economics of Governance, Springer, vol. 6(1), pages 1-12, January.
    2. Jota Ishikawa & Kazuharu Kiyono, 2000. "International Trade and Global Warming," CIRJE F-Series CIRJE-F-78, CIRJE, Faculty of Economics, University of Tokyo.
    3. Gori, Giuseppe Francesco & Lambertini, Luca, 2013. "Trade liberalisation between asymmetric countries with environmentally concerned consumers," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 549-560.
    4. Li, Gang, 2020. "Trade and the environment in a two-country model with endogenous capital accumulation," MPRA Paper 103470, University Library of Munich, Germany.
    5. Ha-Chi Le & Thai-Ha Le, 2023. "Effects of economic, social, and political globalization on environmental quality: international evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4269-4299, May.
    6. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    7. Rauscher, Michael, 2001. "International trade, foreign investment, and the environment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
    8. Pelkmans, Jacques, 2003. "European Integration, Deepening and Widening Economic Analysis," Conference papers 331166, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Akihiko Yanase, 2010. "Trade, Strategic Environmental Policy, and Global Pollution," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 493-512, August.
    10. Sen, Anindita, 2012. "Eco-Labelling and the Labour Market," MPRA Paper 49169, University Library of Munich, Germany.
    11. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    12. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(3), pages 381-413, June.
    13. Fernández-Amador, Octavio & Francois, Joseph F. & Tomberger, Patrick, 2016. "Carbon dioxide emissions and international trade at the turn of the millennium," Ecological Economics, Elsevier, vol. 125(C), pages 14-26.
    14. Anindita Sen & Rajat Acharyya, 2013. "Can policies backfire? The impact of uncoordinated domestic policies on global pollution," Economics Bulletin, AccessEcon, vol. 33(4), pages 2682-2691.
    15. Daisuke Ikazaki & Tohru Naito, 2008. "Population, technological conversion, and optimal environmental policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 705-724, September.
    16. Copeland, Brian R. & Taylor, M. Scott, 1997. "The trade-induced degradation hypothesis," Resource and Energy Economics, Elsevier, vol. 19(4), pages 321-344, November.
    17. Beladi, Hamid & Chau, Nancy H. & Ali Khan, M., 2000. "North-South Investment Flows and Optimal Environmental Policies," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 275-296, November.
    18. Daisuke Ikazaki & Tohru Naito, 2009. "Optimal environmental and industrial policies and imperfect agglomeration effects," Regional Science Policy & Practice, Wiley Blackwell, vol. 1(2), pages 141-157, November.
    19. Kotsogiannis, Christos & Woodland, Alan, 2013. "Climate and international trade policies when emissions affect production possibilities," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 166-184.
    20. Ashantha Ranasinghe & Xuejuan Su, 2023. "When social assistance meets market power: A mixed duopoly view of health insurance in the United States," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 851-869, October.

    More about this item

    Keywords

    Intra-Industry trade; environmental pollution; environmental standard;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:49167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.