Liberalizing trade in environmental goods and services

We examine the effects of trade liberalization in environmental goods in a model with one domestic downstream polluting firm and two upstream firms (one domestic, one foreign). The upstream firms offer their technologies to the downstream firm at a flat fee. The domestic government sets the emission...

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Main Authors: Dijkstra, Bouwe, Mathew, Anuj
Format: Article
Published: Springer Verlag 2015
Online Access:https://eprints.nottingham.ac.uk/31343/
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author Dijkstra, Bouwe
Mathew, Anuj
author_facet Dijkstra, Bouwe
Mathew, Anuj
author_sort Dijkstra, Bouwe
building Nottingham Research Data Repository
collection Online Access
description We examine the effects of trade liberalization in environmental goods in a model with one domestic downstream polluting firm and two upstream firms (one domestic, one foreign). The upstream firms offer their technologies to the downstream firm at a flat fee. The domestic government sets the emission tax rate after the outcome of R&D is known. The effect of liberalization on the domestic upstream firm's R&D incentive is ambiguous. Liberalization usually results in cleaner production, which allows the country to reach higher welfare. However this increase in welfare is typically achieved at the expense of the environment (a backfire effect).
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spelling nottingham-313432020-05-04T17:14:40Z https://eprints.nottingham.ac.uk/31343/ Liberalizing trade in environmental goods and services Dijkstra, Bouwe Mathew, Anuj We examine the effects of trade liberalization in environmental goods in a model with one domestic downstream polluting firm and two upstream firms (one domestic, one foreign). The upstream firms offer their technologies to the downstream firm at a flat fee. The domestic government sets the emission tax rate after the outcome of R&D is known. The effect of liberalization on the domestic upstream firm's R&D incentive is ambiguous. Liberalization usually results in cleaner production, which allows the country to reach higher welfare. However this increase in welfare is typically achieved at the expense of the environment (a backfire effect). Springer Verlag 2015-08-25 Article PeerReviewed Dijkstra, Bouwe and Mathew, Anuj (2015) Liberalizing trade in environmental goods and services. Environmental Economics and Policy Studies . ISSN 1432-847X http://link.springer.com/article/10.1007%2Fs10018-015-0121-6 doi:10.1007/s10018-015-0121-6 doi:10.1007/s10018-015-0121-6
spellingShingle Dijkstra, Bouwe
Mathew, Anuj
Liberalizing trade in environmental goods and services
title Liberalizing trade in environmental goods and services
title_full Liberalizing trade in environmental goods and services
title_fullStr Liberalizing trade in environmental goods and services
title_full_unstemmed Liberalizing trade in environmental goods and services
title_short Liberalizing trade in environmental goods and services
title_sort liberalizing trade in environmental goods and services
url https://eprints.nottingham.ac.uk/31343/
https://eprints.nottingham.ac.uk/31343/
https://eprints.nottingham.ac.uk/31343/