Title

Vertical Structure And Strategic Environmental Trade Policy

Keywords

Environmental policy; Strategic trade; Vertical separation

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. © 2003 Elsevier Inc. All rights reserved.

Publication Date

1-1-2004

Publication Title

Journal of Environmental Economics and Management

Volume

47

Issue

2

Number of Pages

260-269

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/S0095-0696(03)00080-9

Socpus ID

1542290687 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/1542290687

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