The welfare consequences of pollution-tax harmonization

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Abstract

A key, and often controversial, issue in environmental negotiations is the appropriate extent of harmonization of environmental policies. This paper, within a general equilibrium model of international trade with endogenous pollution discharges, identifies instances in which pollution-tax harmonization can deliver potential Pareto improvements.
Original languageEnglish
Pages (from-to)227-238
Number of pages12
JournalEnvironmental and Resource Economics
Volume56
Issue number2
Early online date9 Aug 2012
DOIs
Publication statusPublished - Oct 2013

Keywords

  • environmental taxation
  • International trade
  • Pareto efficiency
  • Pareto improving reforms
  • climate change

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