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来源类型 | Discussion paper |
规范类型 | 论文 |
来源ID | DP9799 |
DP9799 Per-Capita Income as a Determinant of International Trade and Environmental Policies | |
James Markusen | |
发表日期 | 2014-01-26 |
出版年 | 2014 |
语种 | 英语 |
摘要 | International trade policy analysis has tended to focus on the production side of general equilibrium, with policies such as a tariff or carbon tax affecting international and internal income distributions through a Heckscher-Ohlin nexus of factor intensities and factor endowments. Here I move away from this structure to focus on demand and preferences. The specific context is an international environmental externality such as carbon emissions, and I assume a high income elasticity of demand for environmental quality. I analyze how per-capita income differences between two countries affect their abatement efforts in a non-cooperative policy-setting game. This outcome can then be used as a disagreement point to analyze cooperative Nash bargaining. In both outcomes, the poor country makes a lower abatement effort in equilibrium; indeed, it may make none at all and cooperative bargaining with only abatement levels as an instrument may offer no gains. Other features include a novel terms-of-trade externality in which an abating country passes on a part of its abatement cost to its trading partner, in which case the non-cooperative and cooperative outcomes are identical under special symmetry assumptions. When per-capita income differences are large, the poor country may be worse off when the rich country abates. Finally, I examine ?issue linking? in international bargaining, in which one country is both large and rich, and hence has both a high tariff and a high abatement effort in a non-cooperative equilibrium. |
主题 | International Trade and Regional Economics |
关键词 | International negotiations Non-cooperative environmental policy Trade and environment |
URL | https://cepr.org/publications/dp9799 |
来源智库 | Centre for Economic Policy Research (United Kingdom) |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/538635 |
推荐引用方式 GB/T 7714 | James Markusen. DP9799 Per-Capita Income as a Determinant of International Trade and Environmental Policies. 2014. |
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