We examine information provision as a public policy instrument when products generate damages to consumers as well as environmental externalities. We show that information provision dominates taxation in terms of welfare, if information can be provided at low cost. This is because a uniform tax...

Summary In 2004, there was a further enlargement of the European Union. Among the new member countries are eight Central and Eastern European countries. Especially the accession countries located directly at the border to the EU generate significant environmental spillovers harming the Union....

The aim of this study is to analyze the effect that the Energy Tax Directive reform proposed in 2011 would have, if implemented, on the level of prices in the different sectors of the 27 countries of the European Union. We apply a multiregional and multisectoral model of trade flows that takes...

Ecological Tax Reform (ETR) is featuring high on the policy agenda. The key idea is to shift the tax burden from 'goods', such as productive labour, to 'bads' such as energy use and environmental pollution. Since the 1980s, most OECD countries have installed several environmental taxes and...

A key, and often controversial, issue in environmental negotiations is the appropriate extent of harmonization of environmental policies. This paper, within a general equilibrium model of international trade with endogenous pollution discharges, identifies instances in which pollution-tax...

In this paper, we develop a model of international trade and climate change in which emission discharges arising from production have a feedback effect on national production sectors by impacting upon effective factor endowments. With this context, the objectives are, first, to provide a general...

Currently, the influence of transportation and its impact on environmental indicators throughout the world are increasing; however, governments of particular countries try to implement new economic instruments with the expectations of changing people’s behaviour or at least environmental...

This paper explores the role of trade instruments in globally efficient climate policies, focusing on whether or not some form of border tax adjustment (BTA) is warranted when carbon prices differ internationally. The analysis shows that, while there is no case for BTA when all instruments can...