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Trade in the greenhouse: efficient policy in a global model

Research output: Working paper

Published

Publication date2008
Place of publicationLancaster University
PublisherThe Department of Economics
Original languageEnglish

Publication series

NameEconomics Working Paper Series

Abstract

The impact of environmental Kuznets curve (EKC) effects is evaluated in the context of a full model of production and trade within and between rich and poor economies. 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 EKC. 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 exists an important trade-off, evaluated here, between emissions and developing country income.