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Not in Your Backyard? Selective Tariff Cuts for Environmentally Preferable Products AgEcon
Estelle, Gozlan; Ramos, Maria Priscila.
Current negotiations at the WTO’s Committee on Trade and Environment have made it conceivable that WTO members agree on selective tariff cuts for certain Environmentally Preferable Products, in an attempt to combine gains from trade and from cleaner production/consumption. This raises questions on the environmental and welfare implications of trade policy when a close substitute (“environmentally worse") exists. Using a simple partial equilibrium model with two substitutable goods ('green' and conventional), we analyze the rationale for large trading countries to negotiate tariff cuts upon environmental characteristics of the production process. The extent and distribution of environmental and terms-of-trade effects are compared for three policy scenarios:...
Tipo: Working or Discussion Paper Palavras-chave: Commercial Policy; Eco-tariff; Trade Negotiations; Trade and Environment; Environmental Economics and Policy; International Relations/Trade; F130; F180.
Ano: 2007 URL: http://purl.umn.edu/7031
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