Trade and Pollution Linkages Piecemeal Reform and Optimal Intervention

Linkages between international trade and the domestic environment are receiving intensified scrutiny by researchers and policy makers alike. This is especially the case in developing countries, where trade can be a significant agent of change and growth. While trade policies are increasingly oriente...

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Bibliographic Details
Main Author: Beghin, John
Other Authors: Roland-Holst, David, van der Mensbrugghe, Dominique
Format: eBook
Language:English
Published: Paris OECD Publishing 1994
Series:OECD Development Centre Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
Description
Summary:Linkages between international trade and the domestic environment are receiving intensified scrutiny by researchers and policy makers alike. This is especially the case in developing countries, where trade can be a significant agent of change and growth. While trade policies are increasingly oriented toward lower levels of intervention, interventionist policies are increasingly being implemented to correct for negative environmental externalities. In such a situation, the interactions between the two can be complex and challenging for policy makers. This paper explores second-best policy issues affecting trade and environmental linkages. We derive optimum policy interventions and sufficient conditions for welfareimproving piecemeal trade and environmental policy reforms in a small economy. Pollution originates in both domestic consumption and production and is a domestic public bad. Production pollution can be abated by decreasing output and/or decreasing effluent rates per unit of ..
Physical Description:30 p. 21 x 29.7cm