Taxing variable cost: environmental regulation as industrial policy

Article Abstract:

A strategic trade model is used to demonstrate the effectivity of the view that tougher environmental policies spur investments in innovations that are cost efficient, thus improving domestic industrial competitiveness. Results indicate this may be theoretically possible but highly improbable in real world economics. Enhanced environmental performance will probably be achieved through establishment of the responsibility that government and business must each carry.

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Environmental policy and international trade when governments and producers act strategically

Article Abstract:

A mathematical model is used to demonstrate the capacity of both manufacturers and government to act wisely in order to protect the environment while engaging in free trade. One result illustrates that enabling producers to act wisely decreases but does not remove incentives for governments to relax environmental policy. Another demonstrates that allowing governments to act strategically increases incentives for producers to follow suit.

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Incomplete information and incentives to free ride on international environmental resources

Article Abstract:

A dynamic framework is used to evaluate the manner in which informational problems may probably cause grave inefficiencies in the manipulation of international environmental resources. The framework employs a game which is repeated an innumerable number of times, and that begins under incomplete information about valuations. In each game, nations decide on whether or not, and how much, to abate.

Environmental law, Environmental law, International

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