Title

Vertical structure and strategic environmental trade policy

Authors

Authors

S. F. Hamilton;T. Requate

Comments

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Abbreviated Journal Title

J.Environ.Econ.Manage.

Keywords

strategic trade; vertical separation; environmental policy; INTERNATIONAL-TRADE; INDUSTRIAL-POLICY; DELEGATION; TAXES; Business; Economics; Environmental Studies

Abstract

The idea that environmental trade policy can be used to achieve competitive advantage in international markets has important implications for the way we conceive free trade. This paper considers strategic environmental policy in a model that makes explicit the vertical structure that supports production of the traded good. Including intranational vertical relationships in the analysis of strategic environmental trade policy has substantial qualitative effects. When vertical contracts are allowed, the optimal policy to levy on a polluting input under both quantity and price competition in the international market is the Pigouvian tax. (C) 2003 Elsevier Inc. All rights reserved.

Journal Title

Journal of Environmental Economics and Management

Volume

47

Issue/Number

2

Publication Date

1-1-2004

Document Type

Article

Language

English

First Page

260

Last Page

269

WOS Identifier

WOS:000220022400003

ISSN

0095-0696

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