Journal
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
Volume 55, Issue 1, Pages 52-71Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.jeem.2007.08.002
Keywords
trade environment; political economy
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The vast majority of economic research on environmental regulation in open economies focuses on producer generated-smokestack-pollution; we instead consider consumer generated-tailpipe-pollution. We examine how political opposition to environmental regulation varies with a country's trade regime, and show that the impact on environmental policy of a move from autarky to free trade can depend critically on who ultimately generates pollution, producers or consumers. We find that opening to trade may raise industry opposition to smokestack regulation, but reduce its opposition to strict tailpipe policy. (c) 2007 Elsevier Inc. All rights reserved.
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