期刊
STRUCTURAL CHANGE AND ECONOMIC DYNAMICS
卷 65, 期 -, 页码 351-363出版社
ELSEVIER
DOI: 10.1016/j.strueco.2023.03.007
关键词
Energy transition; Foreign direct investment; Game theory; Green growth; Pollution haven hypothesis
类别
This study examines how the transfer of polluting industries can be discouraged by increasing associated costs through carbon taxes and custom duties on polluting imports using game theory. Energy transition is found to play a vital role in preventing this transfer. To attract clean FDI and boost energy transition, a stricter regulatory framework through levying carbon taxes and customs duties is recommended.
Developed and developing countries have made remarkable efforts to address climate action. However, some developing countries have hung on to their comparative advantage in the polluting production of goods. By applying game theory, specifically a dynamic game with incomplete information, this study examines how the transfer of polluting industries can be discouraged by increasing associated costs through carbon taxes and custom duties on polluting imports. 24 developed countries and 18 developing countries were under analysis. The main findings suggest that energy transition could play a vital role in preventing this transfer. To attract clean FDI and boost energy transition, a stricter regulatory framework through levying carbon taxes and customs duties on polluting imports is recommended as an unstable regulatory framework may deter Foreign Direct Investment but also other desirable types of investment. Policymakers should reformulate how carbon taxes are applied to maintain their deterrent effect of reducing carbon emissions.
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