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Author:Conconi, P.
Title:Green Lobbies and Transboundary Pollution in Large Open Economies
Journal:Journal of International Economics
2003 : MAR, VOL. 59:2, p. 399-422
Index terms:INTERNATIONAL TRADE
POLLUTION
POLITICS
MODELS
Language:eng
Abstract:The author employs a common agency model of policy making to examine how green lobbies affect the determination of trade and environmental policies in two large countries. The author shows that the impact of green lobbying on environmental policy outcomes depends crucially on the prevailing trade regime on whether environmental agencies act in a unilateral or coordinated manner, and on the size of the emission leakages and trans-boundary spillovers. Under free trade, a unilateral increase in pollution taxes reduces domestic emissions at the cost of increased foreign emissions; in this case, if the emission leakages and the associated transboundary spillovers are large enough, green lobbying can create a bias towards lower pollution taxes.
SCIMA record nr: 252408
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