Reformas multilaterales sobre comercio y medio ambiente en una economía abierta y contaminada

This paper presents welfare-improving reforms for a polluted open economy aiming to reduce distortions from the use of trade and pollution taxes applied at a sub-optimal level. Using a general equilibrium model where two final goods are produced using an intermediate pollutant input and traded with...

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Bibliographic Details
Main Author: Gallegos David, Alberto
Format: Online
Language:English
Editor: El Colegio de México, A.C. 2017
Subjects:
Online Access:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/9
Journal:

Estudios Económicos

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Summary:This paper presents welfare-improving reforms for a polluted open economy aiming to reduce distortions from the use of trade and pollution taxes applied at a sub-optimal level. Using a general equilibrium model where two final goods are produced using an intermediate pollutant input and traded with a foreign country, the domestic economy chooses trade and environmental policies optimally. Terms of trade effects are key to finding that free trade and non-zero pollution taxes are the directions for multilateral welfare-improving reforms.