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Tariff and environmental policies with product standards
journal contribution
posted on 2012-08-01, 00:00 authored by Chi-Chur Chao, J P Laffargue, Pasquale SgroPasquale SgroFor a small open economy with consumption-based pollution emissions, the first-best optimal policy prescription is free trade along with a Pigouvian tax on emissions. Therefore, a package of coordinated tax reform by replacing tariffs with emission taxes can lower pollution emissions and increase market access and hence improve residents’ welfare and government revenue, as long as the initial tariffs are relatively high. Numerical simulations confirm the results obtained.
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Journal
Canadian journal of economicsVolume
45Issue
3Pagination
978 - 995Publisher
Wiley-Blackwell Publishing, Inc.Location
Hoboken, N.J.Publisher DOI
ISSN
0008-4085eISSN
1540-5982Language
engPublication classification
C1 Refereed article in a scholarly journalCopyright notice
2012, Wiley-Blackwell Publishing, Inc.Usage metrics
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