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| Tekijä: | Walz, U. Wellisch, D. |
| Otsikko: | Is free trade in the interest of exporting countries when there is ecological dumping? |
| Lehti: | Journal of Public Economics
1997 : NOV, VOL. 66:2, p. 275-291 |
| Asiasana: | TRADE POLICY EXPORTS OLIGOPOLY ENVIRONMENTAL ECONOMICS |
| Kieli: | eng |
| Tiivistelmä: | The authors show that welfare-maximizing governments of exporting countries prefer free trade even if countries subsidize their local industries indirectly via ecological dumping. The existence of further national policy instruments does not make free trade agreements obsolete. Environmental taxes can be used to promote exports indirectly. Due to the trade-off between the environmental and the trade objective, export promotion is reduced, leading to lower welfare losses of exporting countries. The authors also show that one of the basic results of the strategic trade policy literature holds even in the presence of the possibility of ecological dumping. |
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