@techreport{0b8a2b4b0e4f4c9c8dc757db059e7a6c,
title = "Welfare and Trade Effects of International Environmental Agreements",
abstract = "We analyse the welfare effects of environmental policy arising from the formation of an international environmental agreement on the participating and non-participating countries and thus shed light on the potential incentives for a country to join such an agreement. Within a N-country Q-goods general equilibrium framework under free-trade conditions, we consider unilateral and cooperative policy settings and, within the latter, country-specific and fully harmonized policies within the agreement. A key result in the paper is the emergence of a negative relationship, arising from terms of trade effects, between the welfare changes of the participating and non-participating countries following the formation of the agreement.",
keywords = "International environmental agreements, environmental taxation, international trade, Pareto efficiency, Pareto improving reforms, climate change",
author = "Catia Montagna and Avanti Pinto and Nikolaos Vlassis",
year = "2019",
month = jul,
day = "24",
language = "English",
series = "Discussion Papers in Economics and Finance",
publisher = "University of Aberdeen",
number = "4",
pages = "3--19",
address = "United Kingdom",
type = "WorkingPaper",
institution = "University of Aberdeen",
}