This paper shows how competition between interests can internalize economic externalities groups. The key feature is …, environmental lobbying has a huge beggar-thy-neighbour element …

This paper shows how competition between interests can internalize economic externalities groups. The key feature is …, environmental lobbying has a huge beggar-thy- neighbour element …

emissions). Governments may have some preference for supporting domestic production, such as by interest-group lobbying … environmental externalities are large enough relative to political distortions. Climate finance is an effective alternative if …

, since this increases tariff revenues. Second, we show the effects of trade liberalization on lobbying incentives. Both lobby … groups are found to reduce their lobbying. This is because the marginal returns to a change in the tax fall. Thus, the lobby … decrease. An implication is that tariffs do not only distort domestic consumption and production, but also stimulate lobbying …