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2022 | OriginalPaper | Chapter

17. International Trade in Environmental Goods and Environmental Regulation in the Presence of Lobbying

Author : Masakazu Maezuru

Published in: Theory and History in Regional Perspective

Publisher: Springer Nature Singapore

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Abstract

This paper analyzes the relationship between international trade in environmental goods and environmental regulation in the presence of lobbying. We assume an open economy consisting of two countries and two polluting sectors subject to environmental taxation. Thus, we have an environmental goods industry sector supplying pollution abatement goods and services. The pollution abatement goods and services are assumed to be internationally traded, and this is the only industrial interaction between the two countries. Pollution affects consumers in both countries. The impact of lobbying on a politically optimal pollution abatement subsidy is ambiguous and depends on the relative strength of the environmental lobby group.

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Metadata
Title
International Trade in Environmental Goods and Environmental Regulation in the Presence of Lobbying
Author
Masakazu Maezuru
Copyright Year
2022
Publisher
Springer Nature Singapore
DOI
https://doi.org/10.1007/978-981-16-6695-7_17