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Trade in the greenhouse: efficient policy in a global model

Research output: Contribution to journalJournal article

Published

Journal publication date2013
JournalInternational Journal of Sustainable Economy
Journal number1
Volume5
Number of pages14
Pages1-14
Original languageEnglish

Abstract

A computable general equilibrium model of production and trade within and between rich and poor economies is developed in which the interaction between trade and environmental policies is analysed. The shape of iso-emissions curves, defined in tariff and emissions tax space, is evaluated both in the presence and in the absence of an environmental Kuznets curve. Gains in the income of developing countries are possible without compromising on emissions where there are inefficiencies in policy. However, where policy is efficient there may exist an important trade-off, evaluated and illustrated here, between emissions and developing country income.