Resource title

International trade and environmental policy: production vs consumption taxes

Resource image

image for OpenScout resource :: International trade and environmental policy: production vs consumption taxes

Resource description

The paper considers the choice of production versus consumption taxes as corrective instruments for environmental externalities in a two-country international duopoly context. It is shown that the use of either instrument or of any combination of the two is a Nash equilibrium of a taxation game between the two countries. However the equilirium where both countries use exclusively a production tax Pareto-dominates all other ones in a symmetric game

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/Inseadwp1994/94-43.pdf

Resource license

Copyright INSEAD. All rights reserved