This paper identifies a mechanism through which trade restrictions and counter-restrictions affect the climate. A series of tariffs and retaliatory export taxes increases the level of global emissions if a country using export taxes obtains considerable real income gains from local air pollution...

This paper demonstrates that the notion of environmental policy as a secondary trade barrier needs substantial modification when production pollution and consumption pollution coexist. The paper first focuses on local pollution and unilateral tax adjustments, showing that, under certain...

M. Shahe Emran and Joseph E. Stiglitz (2005) show that a revenue-neutral indirect tax reform, in which the value added tax (VAT) is increased to compensate for the revenue loss from tariff cuts, reduces welfare due to strong substitutability in consumption between formal and informal...

The present paper focuses on earmarking of taxation to pay for public pollution abatement within the context of trade and domestic tax reforms. We identify situations in which an increase in public abatement only increases welfare by more than that in private abatement only. We also show that...

The present paper focuses on earmarking of taxation to pay for public pollution abatement within the context of trade and domestic tax reforms. We identify situations in which an increase in public abatement only increases welfare by more than that in private abatement only. We also show that...