On trade liberalization and transboundary pollution

S. Baksi, A. Ray Chaudhuri

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We examine the impact of freer trade on equilibrium pollution tax and welfare when markets are imperfectly competitive and pollution is transboundary. In the symmetric case, bilateral tariff reduction (i) strengthens environmental protection if and only if pollution is sufficiently harmful, and (ii) decreases welfare in the neighbourhood of free trade.
Original languageEnglish
Pages (from-to)2605-2612
JournalEconomics Bulletin - AccessEcon
Volume29
Issue number4
Publication statusPublished - 2009

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