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Import Tariffs as Environmental Policy Instruments by Christiane Kraus (auth.)

By Christiane Kraus (auth.)

The theoretical claims for eco-tariffs are carefully analyzed inside of a unified framework shaped of a global alternate version enriched with either a household and a world externality. through the process the research the version is changed to research an array of contexts for which eco-tariffs were claimed to enhance environmental caliber or welfare. The conditions and prerequisites are characterized lower than which such price lists should be proven to enhance environmental caliber and social welfare, taking account of normal equilibrium results. The theoretical effects are utilized in a coverage research of eco-tariffs and different exchange tools within the context of household and worldwide environmental coverage with a view to investigate the relevance of the eco-tariffs which have been subjected to the theoretical research. ultimately, the GATT/WTO ideas and laws are awarded, seeing that up to now those have banned using eco-tariffs. the foundations and rules are mapped opposed to the theoretical effects to teach which principles must be changed.

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2. Eco-tariffs to Avoid Eco-dumping and ERTB 29 competitiveness effects of internationally differing environmental policy measures, do they provide incentives for countries with lower environmental standards to improve environmental regulation? 4. SUMMARY AND CONCLUSIONS Our survey of empirical evidence regarding eco-dumping and ERTB shows that there is little indication that differences in the stringency of environmental regulation across countries seriously harms competitiveness of industries subject to higher environmental standards.

Furthermore, production isoquants are no longer tangential on the new efficiency locus. ~ Figure 3-1. e. the difference in the factor intensities in the two sectors is reduced, yet not reversed. x remains the capital-intensive good. e. factor intensities are reversed. In that case, y becomes capital-intensive as a consequence of environmental regulation 4 • Finally, if a negative tax would be levied on capital use in the x sector, the contract curve would be moved further to the south east (not shown).

At end points, the two production possibility frontiers coincide which reflects the fact that for complete specialisation, environmental regulation by means of a tax has no allocative effect. S On the question of the slope of the production possibility frontier in the presence of taxes that distort the factor market see Bhagwati & Srinivasan [1971], Herberg & Kemp [1971] and Jones [1971]. For graphic representations of the effects of the environmental tax g on capital in the x sector, we shall assume that the shape of the production possibility frontier does in fact remain concave to the origin.

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