Environmental Economics and the International Economy by Laura Marsiliani, Michael Rauscher, Cees Withagen

By Laura Marsiliani, Michael Rauscher, Cees Withagen

13 papers addressing present concerns in overseas environmental economics. They study the connection among alternate liberalization and environmental coverage; the effect of alternate liberalization on environmental caliber; examine difficulties of dedication confronted by means of regulating specialists; offer new insights into the Porter speculation; current empirical learn relating to overseas competitiveness and placement of polluting crops; tackle foreign environmental agreements, with a unique concentrate on source of revenue distribution and the political-economy measurement, tradable emission savings, and the quantitative effect of alternate liberalization and the implementation of the Kyoto Protocol on carbon leakage.The papers during this quantity express that even after ten years of excessive study either on exchange and the surroundings, and on transfrontier toxins and foreign environmental agreements, learn during this sector nonetheless produces new, suitable, and thought-provoking principles and effects.

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At the free-trade equilibrium, in general, a country may or may not specialize in production. 3 Since South is endowed with a relatively larger stock of the pollution-intensive natural resource, it specializes in the resource-intensive (or “dirty” good) and North in the “cleaner” good. The terms-of-trade effect of environment policy works through its impact on the consumption and production decisions, and hence on the international commodity 3 A related paper examines the equilibrium where there is incomplete specialization.

National governments foresee the opportunity to distort their environmental policy in order to create more favorable conditions for their 1 We thank an anonymous referee for helpful comments. A mathematical appendix is available form the authors on request. , Rauscher, M. ), [Environmental Economics and the International Economy], 33—54. © 2002 Kluwer Academic Publishers. Printed in the Netherlands. 34 ISABELLE PÉCHOUX, JÉRÔME POUYET national producers. In presence of transboundary pollution, each country will only abate up to the point where its own marginal benefits equal its marginal costs, and it will not consider the damage to the other countries.

Oxford: Oxford University Press. Department of Economics and CentER, Tilburg University, The Netherlands; Indian Statistical Institute, India. 12). We first derive expressions for relative demand and supply in terms of relative prices and factor endowments. 7), our assumption and the restriction we find: GREENER TAXES, FREER TRADE? 17 which reflects our Cobb-Douglas assumption which implies that expenditure shares in this case) are constant. 2). From the above solutions for relative variables and the equations in section 2, we can solve for each variable separately.

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