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Soham Baksi and Amrita Ray chaudhuri
''On trade liberalization and transboundary pollution''
( 2009, Vol. 29 No.4 )
We examine the impact of freer trade on equilibrium pollution tax and welfare when markets are imperfectly competitive and pollution is transboundary. In the symmetric case, bilateral tariff reduction (i) strengthens environmental protection if and only if pollution is sufficiently harmful, and (ii) decreases welfare in the neighbourhood of free trade.
Keywords: Transboundary pollution, Strategic environmental policy, Bilateral trade liberalization
JEL: Q5 - Environmental Economics: General
F1 - Trade: General
Manuscript Received : Jun 23 2009 Manuscript Accepted : Oct 16 2009

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