Environmental Policy, Intra-Industry Trade andTransfrontier Pollution

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• 作者：Nicole G¨¹rtzgen and Michael Rauscher
• 关键词：environmental standards ; intra ; industry trade ; market structure
• 刊名：Environmental and Resource Economics
• 出版年：2000
• 出版时间：2000
• 年：2000
• 卷：17
• 期：1
• 页码：59-71
• 全文大小：71 KB

文摘

The paper discusses effects of domestic environmental policy on foreignemissions and on transboundary pollution. We use a Dixit-Stiglitz typemodel of monopolistic competition with an endogenous number of firms.Production generates environmental externalities which spill over to theother country. It is shown that environmental policy has an impact onmarket structure at home and abroad. These market structure effectsinduce changes in emissions abroad. In contrast to what has been derivedin earlier contributions, it turns out to be possible that tighterenvironmental standards at home lead to less emissions abroad. The paperderives these results and provides the economic intuition behind them.Finally, conditions for optimal environmental policies are derived.