Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148321
Authors: 
Steffen, Nico
Year of Publication: 
2016
Series/Report no.: 
DICE Discussion Paper 238
Abstract: 
This paper analyzes environmental concerns by a government in a setting of rent-extracting strategic trade policy with endogenous firm investment into production technologies. The simple analysis highlights the importance of investment incentives caused by tariffs in general and shows that the resulting implications for the optimal tariff decision can be completely different between traditional tariff considerations and an environmentally conscious government. We show that an importing country in a dynamic setting with endogenous firm technology choices prefers to impose discriminatory tariffs both ex post and ex ante when emissions matter, while a commitment to uniform tariffs is optimally chosen when environmental concerns do not play a role.
Subjects: 
Climate policy
Carbon tariffs
Technology choice
Discriminatory tariffs
JEL: 
F13
F18
D24
Q58
ISBN: 
978-3-86304-237-0
Document Type: 
Working Paper

Files in This Item:
File
Size
339.24 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.