The paper deals with the analysis of nationally optimal tax structures as to internalize crossborder externalities. Furthermore, the existence of a double dividend arising from the implementation of pollution taxes is evaluated. In the presence of lump-sum taxes both pollution taxes and capital...

In situations where the traditional instruments of trade policy are not available, protection for importcompeting industries can be given only indirectly. One of the candidates of giving indirect subsidies is environmental regulation. The competitiveness of a domestic industry can be improved by...

This paper explains how, in the context of incomplete coordination among all countries, unilateral policies that might at first sight seem pro-green could actually turn out to harm the global environment. The free-riding motives and the difficulty of reaching an effective international...