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Free-riding, carbon treaties, and trade wars: the role of domestic environmental policies
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Abrego, Lisandro and Perroni, Carlo (1998) Free-riding, carbon treaties, and trade wars: the role of domestic environmental policies. Working Paper. Coventry: University of Warwick. Centre for the Study of Globalisation and Regionalisation. Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation) (No.09/).
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Official URL: http://www2.warwick.ac.uk/fac/soc/csgr/research/wo...
Abstract
This paper uses a calibrated general-equilibrium model of North-South trade with carbon emissions to explore the strategic, open-economy implications of price and quantity based instruments for CO2 emission reduction. We compute non-cooperative environmental and trade policy equilibria and Nash bargaining outcomes in environmental policies with side payments of cash. Results show that quotas can lead to higher internalization levels in a non-cooperative zero-tariff equilibrium in comparison with emission fees. If tariffs are also chosen non-cooperatively, the form of policy instrument used affects equilibrium tariffs, with quotas leading to lower trade barriers, particularly under a regional carbon treaty.
| Item Type: | Working or Discussion Paper (Working Paper) | ||||
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| Subjects: | H Social Sciences > HF Commerce G Geography. Anthropology. Recreation > GE Environmental Sciences |
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| Divisions: | Faculty of Social Sciences > Economics Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation |
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| Library of Congress Subject Headings (LCSH): | Environmentalism, Carbon dioxide mitigation, Tariff, Equilibrium (Economics) | ||||
| Series Name: | Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation) | ||||
| Publisher: | University of Warwick. Centre for the Study of Globalisation and Regionalisation | ||||
| Place of Publication: | Coventry | ||||
| Official Date: | July 1998 | ||||
| Dates: |
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| Number: | No.09/ | ||||
| Number of Pages: | 34 | ||||
| Institution: | University of Warwick | ||||
| Status: | Not Peer Reviewed | ||||
| Access rights to Published version: | Open Access (Creative Commons) | ||||
| Funder: | Economic and Social Research Council (Great Britain) (ESRC) | ||||
| Grant number: | L320253230 (ESRC) |
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