- Authors
- Udo Kreickemeier Universität Göttingen
- Philipp M. RichterTU Dresden
- title
- Environmental Policy and Firm Selection in the Open Economy
- Please use the following URL when quoting:
- https://nbn-resolving.org/urn:nbn:de:bsz:14-qucosa2-343786
- Series
- CEPIE Working Paper
- multivolume_volume0
- 04/19
- publication_date
- 2019
- issn
- 2510-1196
- Abstract (EN)
- 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.
- Keywords (EN)
- Strategic Environmental Policy, Firm Location, Carbon Leakage, General Equilibrium, Trade and environment, Heterogeneous firms, Unilateral environmental policy, Emissions leakage
- Classification (DDC)
- 330
- Classification (RVK)
- QC 000
- university_publisher
- Technische Universität Dresden, Dresden
- version
- Entwurf
- URN Qucosa
- urn:nbn:de:bsz:14-qucosa2-343786
- Qucosa date of publication
- 01.07.2019
- Document type
- research_paper
- Document language
- English
- licence