Can R&D-Inducing Green Tariffs Replace International Environmental Regulations?

Arbeitspapier

This paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and the environment. It shows that tariffs levied on polluting goods could result in less global pollution than harmonization of environmental standards by inducing more pollution abatement R&D, generating lower unit emissions from production, and reducing competition. Green tariffs reduce pollution by (1) shifting production to the region where environmental standards are respected, (2) strategically inducing abatement R&D by the Northern firm by granting the latter a higher market share, (3) creating abatement R&D by deterring delocation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 92.2006

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Trade and Environment ; Multinational Firms; International Business ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Renewable Resources and Conservation: Demand and Supply; Prices ; Production Analysis and Firm Location: Government Policy
• Subject: Environmental Standards ; Multinationals ; Location of Firms ; Pollution Abatement R&D ; Green Tariffs ; Umweltauflage ; Ökosteuer ; Zoll ; Umwelttechnik ; Multinationales Unternehmen ; Betrieblicher Standort ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Naghavi, Alireza
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/74092
• Last update: 10.03.2025, 11:43 AM CET