The purpose of this paper is to extend the existing literature on the relationship between international trade and climate change by introducing non-tradeable goods and examining their role in the characterization of the Pareto-ecient environmental and trade policies. It is argued that the presence of non-tradable goods does not impede the central planner from imposing the Pigovian carbon taxes.
|Name||Discussion Paper in Economics|
|Publisher||University of Aberdeen|
- Environmental taxation
- international trade
- Pareto efficiency
- Non-tradeable goods
- climate change