File(s) under permanent embargo
Foreign investment and environmental regulations in LDCs
journal contributionposted on 1999-05-01, 00:00 authored by H Beladi, Chi-Chur Chao, R Frasca
This paper examines the welfare and policy issues of pollution taxes and foreign-investment quotas for a small, developing economy. We consider each policy in isolation and joint optimum of them. We find that, for a country with capital inflows, an active environmental policy along with a liberal policy on foreign capital is optimal.