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Trade, transboundary pollution, and foreign lobbying

Abstract:

In this paper, we explore the use of trade policy in addressing transboundary stock pollution problems such as acid rain and water pollution. We show that a tariff determined by the current level of accumulated pollution can induce the time path of emissions optimal for the downstream (polluted) country. But if the upstream (polluting) country can lobby the downstream government to impose lower tariffs, distortions brought by corruption and foreign lobbying lead to a rise in the upstream coun...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
OxCarre Papers
Publication date:
2011-11-24
Paper number:
71
Pubs id:
1143854
Local pid:
pubs:1143854
Deposit date:
2020-12-15

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