Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes

@inproceedings{Metcalfe1998PiecemealRO,
  title={Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes},
  author={Mark R. Metcalfe and John C. Beghin},
  year={1998}
}
We incorporate endogenous (price-responsive) consumption pollution into a dual trade model to assess welfare effects of coordinated trade and environmental piecemeal reform in a small, open and distorted economy. Pollution is generated by production and consumption. Producers control the level of pollution and face incentives to abate both types of pollution. We identify sufficient conditions for welfare-improving reforms of trade and environmental policies. An additional domestic environmental… CONTINUE READING

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