ENVIRONMENTAL PROTECTION WITH POLICIES FOR SALE

dc.creatorSchleich, Joachim
dc.date2017-04-01T14:03:52Z
dc.date.accessioned2026-07-09T04:48:49Z
dc.descriptionThis paper generalizes the Grossman-Helpman political economy model to characterize the structure of environmental and industry protection for a small open economy when domestic and/or trade policies are the outcome of a noncooperative common agency game between sector-specific producer lobbies and the government. For a consumption externality, the political equilibrium results if domestic and trade policies are available, are production-enhancing protection of organized industries, but the same environmental protection as Pigouvian taxes. Subsidies to organized industries counterbalance environmental taxes when there is a production externality, and it is ambiguous whether domestic or trade policy alone leads to more environmental protection. In addition, this paper demonstrates that the original Grossman-Helpman results arise as a special case that rests on the assumption that only trade policies are available to the government.
dc.identifierdoi:10.22004/ag.econ.51207
dc.identifierhttps://ageconsearch.umn.edu/record/51207/files/97-2.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/51207
dc.identifier.urihttp://hdl.handle.net/123456789/555215
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/51207
dc.titleENVIRONMENTAL PROTECTION WITH POLICIES FOR SALE
dc.typeText

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