Environmental and Trade Policies for Oligopolistic Industry in the Presence of Consumption Externalities

• Ishikawa Jota

  Hitotsubashi University and RIETI

• Okubo Toshihiro

  Kobe University and University of Manchester

Abstract

  We explore the effects of environmental and trade policies with negative consumption externalities when a domestic firm and a foreign rival produce imperfect substitutes and compete in the domestic market. Consumption of the foreign product generates more emissions than that of the domestic product. Emission taxes reduce emissions, harm the foreign firm, but may benefit the domestic firm. Tariffs could mitigate externalities more “effectively” than emission taxes. Consumption subsidies provided to the domestic product may raise emissions and worsen domestic welfare. Stringent environmental policies may induce the foreign firm to produce an environmentally friendly good, though environmental damages may increase.

Journal

• The International Economy

  The International Economy 2010 (14), 59-76, 2010

  The Japan Society of International Economics

Keywords

• environmental policies
• trade policies
• consumption externalities
• international oligopoly
• differentiated products

Details

• CRID: 1390282680388609920
• NII Article ID: 130004562644
• NII Article ID: 40018712898
• NII Book ID: AA12436053
• ISSN: 03873943
• ISSN: 18844367
• ISSN: 21866074
• DOI: 10.5652/internationaleconomy.ie2010.04.i.o
• HANDLE: 10086/23048
• NDL BIB ID: 11002176
• Web Site: https://ndlsearch.ndl.go.jp/books/R000000004-I11002176
• Text Lang: en
• Data Source:
  • JaLC
  • IRDB
  • NDL
  • Crossref
  • CiNii Articles
• Abstract License Flag: Disallowed