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Free trade and global warming: a trade theory view of the Kyoto protocol.
- Source :
-
Journal of Environmental Economics & Management . Mar2005, Vol. 49 Issue 2, p205-234. 30p. - Publication Year :
- 2005
-
Abstract
- This paper demonstrates how several important results in environmental economics, true under mild conditions in closed economies, are false or need serious amendment in a world with international trade in goods. Since the results we highlight have framed much of the ongoing discussion and research on the Kyoto protocol, our viewpoint from trade theory suggests a re-examination may be in order. Specifically, we demonstrate that in an open trading world, but not in a closed economy setting: (1) unilateral emission reductions by the rich North can create self-interested emission reductions by the unconstrained poor South; (2) simple rules for allocating emission reductions across countries (such as uniform reductions) may well be efficient even if international trade in emission permits is not allowed; and (3) when international emission permit trade does occur it may make both participants in the trade worse off and increase global emissions. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00950696
- Volume :
- 49
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- Journal of Environmental Economics & Management
- Publication Type :
- Academic Journal
- Accession number :
- 16403845
- Full Text :
- https://doi.org/10.1016/j.jeem.2004.04.006