Tariff Reforms in the Presence of Pollution

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Abstract

A number of countries are considering, mainly as part of their obligations under current treaties, domestic action internalizing the social cost of pollution. One of the major obstacles, however, in those countries is the fear of jeopardizing their competitive position in world markets. A policy that has been repeatedly proposed to deal with this challenge is a tariff that mitigate any distortions arising from cross-country differences in environmental policy. Such unilateral actions are the focus of this paper. It is argued that if a country set its pollution taxes optimally, cooperatively or non-cooperatively, there exist unilateral tariff reforms that improve global welfare.
Original languageEnglish
PublisherUniversity of Aberdeen Business School
Number of pages19
Publication statusPublished - Nov 2015

Publication series

NameDiscussion Paper in Economics
PublisherUniversity of Aberdeen
No.11
Volume15
ISSN (Electronic)0143-4543

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Keywords

  • Environmental taxation
  • Tariff reforms
  • BTAs
  • International trade
  • Pareto effciency
  • Pareto improving reforms
  • Climate change

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Vlassis, N. (2015). Tariff Reforms in the Presence of Pollution. (Discussion Paper in Economics; Vol. 15, No. 11). University of Aberdeen Business School.