Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201390
Authors: 
Kreickemeier, Udo
Richter, Philipp M.
Year of Publication: 
2019
Series/Report no.: 
DIW Discussion Papers 1807
Abstract: 
In this paper, we analyse the effects of a unilateral change in an emissions tax in a model of international trade with heterogeneous firms. We find a positive effect of tighter environmental policy on average productivity in the reforming country through reallocation of labour towards exporting firms. Domestic aggregate emissions fall, due to both a scale and a technique effect, but we show that the reduction in emissions following the tax increase is smaller than in autarky. Moreover, general equilibrium effects through changes in the foreign wage rate lead to a reduction in foreign emissions and, hence, to negative emissions leakage in case of transboundary pollution.
Subjects: 
Trade and environment
Heterogeneous firms
Unilateral environmental policy
Emissions leakage
JEL: 
F18
F12
F15
Q58
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
649.22 kB





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