Pareto-Efficient Climate and Trade Policies in the Presence of Non-Tradeable Goods

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Abstract

The purpose of this paper is to extend the existing literature on the relationship between international trade and climate change by introducing non-tradeable goods and examining their role in the characterization of the Pareto-ecient environmental and trade policies. It is argued that the presence of non-tradable goods does not impede the central planner from imposing the Pigovian carbon taxes.
Original languageEnglish
PublisherUniversity of Aberdeen: Business School
Number of pages19
Publication statusPublished - Oct 2015

Publication series

NameDiscussion Paper in Economics
PublisherUniversity of Aberdeen
No.8
Volume15
ISSN (Electronic)0143-4543

Keywords

  • Environmental taxation
  • international trade
  • Pareto efficiency
  • Non-tradeable goods
  • climate change

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