Environmental Regulations on International Transportation * (original) (raw)

Abstract

This paper incorporates pollution emissions from international transportation into the standard model of strategic trade and environmental policies, and investigates the effect of trade liberalization and some form of environmental agreement on national welfare and environment. Our model explicitly includes the imperfectly competitive market for inter-national transportation, as well as the imperfectly competitive market for final products. We find that a trade liberalization may reduce each country's welfare unless some level of environmental regulation on international transportation is in place. In addition, when trade is fairly liberalized, a mutual increase in the common emission tax rates may improve each country's welfare. However, when trade is not fairly liberalized, imposing emission tax on international transportation may reduce welfare.

Kenzo Abe hasn't uploaded this paper.

Let Kenzo know you want this paper to be uploaded.

Ask for this paper to be uploaded.