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Author: | Kohn, R. |
Title: | The effect of environmental taxes on the volume of international trade |
Journal: | Ecological Economics
2000 : JUL, VOL. 34:1, p. 77-88 |
Index terms: | ECONOMICS ECOLOGY INTERNATIONAL TRADE |
Language: | eng |
Abstract: | This paper is a response to Ropke's (1994) question whether environmental taxes increase or decrease the volume of international trade. Using a three-country Heckscher-Olin-Samuelson model, it is shown that the effect can be in either direction. In the absence of pollution haven and three-country effects that reverse natural comparative advantage, environmental taxes decrease (increase) the volume of trade between any two countries when the tax is larger in the country that exports (imports) the pollutive good. |
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