Welfare and Trade Effects of International Environmental Agreements

Research output: Working paperDiscussion paper

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Abstract

We analyse the welfare effects of environmental policy arising from the formation of an international environmental agreement on the participating and non-participating countries and thus shed light on the potential incentives for a country to join such an agreement. Within a N-country Q-goods general equilibrium framework under free-trade conditions, we consider unilateral and cooperative policy settings and, within the latter, country-specific and fully harmonized policies within the agreement. A key result in the paper is the emergence of a negative relationship, arising from terms of trade effects, between the welfare changes of the participating and non-participating countries following the formation of the agreement.
Original languageEnglish
PublisherUniversity of Aberdeen
Pages3-19
Number of pages17
Publication statusPublished - 24 Jul 2019

Publication series

NameDiscussion Papers in Economics and Finance
PublisherUniversity of Aberdeen Business School
No.4
Volume19
ISSN (Electronic)0143-4543

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International environmental agreements
Terms of trade
General equilibrium
Welfare effects
Incentives
Join
Environmental policy
Free trade

Keywords

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

Cite this

Montagna, C., Pinto, A., & Vlassis, N. (2019). Welfare and Trade Effects of International Environmental Agreements. (pp. 3-19). (Discussion Papers in Economics and Finance; Vol. 19, No. 4). University of Aberdeen.

Welfare and Trade Effects of International Environmental Agreements. / Montagna, Catia; Pinto, Avanti; Vlassis, Nikolaos.

University of Aberdeen, 2019. p. 3-19 (Discussion Papers in Economics and Finance; Vol. 19, No. 4).

Research output: Working paperDiscussion paper

Montagna, C, Pinto, A & Vlassis, N 2019 'Welfare and Trade Effects of International Environmental Agreements' Discussion Papers in Economics and Finance, no. 4, vol. 19, University of Aberdeen, pp. 3-19.
Montagna C, Pinto A, Vlassis N. Welfare and Trade Effects of International Environmental Agreements. University of Aberdeen. 2019 Jul 24, p. 3-19. (Discussion Papers in Economics and Finance; 4).
Montagna, Catia ; Pinto, Avanti ; Vlassis, Nikolaos. / Welfare and Trade Effects of International Environmental Agreements. University of Aberdeen, 2019. pp. 3-19 (Discussion Papers in Economics and Finance; 4).
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