Multilateral trade and environmental reforms in a polluted open economy

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Date

1 décembre 2017

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Type de document
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Estudios Económicos (México, D.F.)

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SciELO : Scientific Electronic Library Online

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SciELO

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info:eu-repo/semantics/openAccess

Mots-clés Und

optimal policies international trade multilateral externalities environment trade reforms

Sujets proches En

Trade Commercial trade Foreign trade Trade Trade

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Alberto Gallegos David, « Multilateral trade and environmental reforms in a polluted open economy », Estudios Económicos (México, D.F.), ID : 10670/1.fzx8w6

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This paper presents welfare-improving reforms for a polluted open economy aiming to reduce distortions from the use of trade and pollution taxes applied at a sub-optimal level. Using a general equilibrium model where two final goods are produced using an intermediate pollutant input and traded with a foreign country, the domestic economy chooses trade and environmental policies optimally. Terms of trade effects are key to finding that free trade and non-zero pollution taxes are the directions for multilateral welfare-improving reforms.

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