The last ten years have seen an upsurge in interest in the nexus of trade and environmental policies. This reflects in part the need to deal with major global pollution problems…
Abstract
The last ten years have seen an upsurge in interest in the nexus of trade and environmental policies. This reflects in part the need to deal with major global pollution problems, and in part concerns that globalisation may have adverse impacts on the environment. In this paper I concentrate mainly on the second issue, and review what recent economic literature has to say about it. I begin with conventional trade models in which government bodies have perfect information and are welfare maximisers, and show that this analysis does not provide much support for the concern of some of the proposed policy recommendations. I then turn to more recent models of political economy and imperfect information to see whether they provide a better explanation for the concerns and policy recommendations.
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This paper uses simple examples and diagrams to illustrate some of the more important propositions relating to producer taxation which have emerged from the literature on optimal…
Abstract
This paper uses simple examples and diagrams to illustrate some of the more important propositions relating to producer taxation which have emerged from the literature on optimal taxation. Although a few less complex surveys of this literature are now available (Bradford and Rosen, 1976; Sandmo, 1974), most of the debate is still to be found in relatively technical papers. Since the four propositions here examined are important, we feel that their separation from the technical literature may serve a useful pedagogical purpose.
To construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of environmental…
Abstract
Purpose
To construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of environmental stringency on the trade patterns, and especially on the export performance of the countries.
Design/methodology/approach
The gravity model of trade is used in order to find the effects of environmental stringency on the variation in trade flows.
Findings
The study shows that environmental stringency has an important impact on the export of the countries. The impact of the degree of environmental stringency on the exports is significantly negative suggesting an inverse relationship between export values and relative environmental sensitivity performance of the nations.
Originality/value
This study supports the argument that the environmental stringency level differential between developing and developed nations is a crucial criteria in terms of explaining shifts in the trade patterns and international specialization of the countries.