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Please use this identifier to cite or link to this item: http://hdl.handle.net/11266/5419

Title: Price and Quantitative Restrictions of Trade and Environment in an Open Economy
Other Titles: 開放経済における貿易と環境の価格・数量規制
Authors: Kawahara, Shinya
河原, 伸哉
Keywords: Piecemeal Reform
Trade Policy
Environmental Policy
Trade and Environment
Issue Date: 5-Nov-2013
Publisher: 立正大学経済学会
Abstract: We examine the welfare effects of price and quantitative restrictions of trade and environment in an open economy. By extending the model developed by Copeland (1994) to include endogenous determination of terms of trade, we characterize the welfare-improving reforms of tariffs, import quotas, pollution taxes, and pollution quotas. First, we show that a reduction of all tariff distortions proportional to the degree of tariff distortion improves a large country’s welfare if all the industries protected by tariffs are damage-intensive with respect to pollutants regulated by pollution taxes. Second, we characterize the conditions under which relaxing an import quota improves welfare. Third, we show that a reduction of all pollution tax distortions proportional to the degree of pollution tax distortion improves welfare under the same conditions as in tariff reforms. Finally, we characterize the conditions under which tightening a pollution quota improves welfare.
URI: http://hdl.handle.net/11266/5419
Appears in Collections:63巻2号

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