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| Author: | Mastad, O. |
| Title: | On the efficiency of green trade policy |
| Journal: | Environmental and Resource Economics
1998 : JAN, VOL. 11:1, p. 1-18 |
| Index terms: | EFFICIENCY TRADE POLICY ENVIRONMENT |
| Language: | eng |
| Abstract: | The paper derives conditions for second best environmental policy when there are foreign countries which fail to implement appropriate environmental regulations. It is shown that in such cases, efficiency in the global economy will not be achieved unless domestic environmental regulations are supplemented by trade provisions. The result is independent of whether environmental problems are local or international. There is an economic rationale for regulating the trade between signatories and non-signatories of international environmental agreements. |
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