Using Trade Policy to Achieve Environmental Goals*
نویسنده
چکیده
I consider the interaction of trade and environmental policies in two canonical models: competitive general equilibrium (which I extend to allow for monopoly power in trade) and multi-period oligopoly (which I extend to incorporate a general pollution abatement technology). Despite the complexities of the models and the considerable differences between them, they have surprisingly similar implications: deviations from first-best rules are justified only by constraints on policy choice (whether firms behave strategically or not); and, when pollution generated by traded goods cannot be adequately taxed, trade policy should be more restrictive towards exports but less restrictive towards imports. JEL: O13, L13, F12.
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