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An Alternative Base Case for Modeling Trade and the Global Environment

机译:为贸易和全球环境建模的替代基础案例

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The trade-and-environment literature concentrates on a generic base case, focused on the production side of general equilibrium, with consumption "neutralized" by assuming homothetic preferences. I offer a simple alternative base case, neutralizing the usual production features instead. I focus on the demand side of general equilibrium, introducing nonhomothetic preferences where environmental quality has an income elasticity of demand exceeding one. I contrast cooperative and noncooper-ative outcomes between two countries, showing that the poor country makes lower abatement efforts under either assumption. A poor country may be worse off when the large country abates (reversing the usual argument on free riding) and cooperative bargaining over abatement levels may offer no gains. I identify "policy leakage" and show that border taxes are counterproductive. Free trade is good for the environment for several reasons. Finally, I briefly examine "issue linking" in bargaining to assess the benefits of linking trade and environment negotiations.
机译:贸易和环境文献集中在一般的基本情况下,侧重于一般均衡的生产方面,通过假设同质偏好来“抵消”消费。我提供了一个简单的替代基本案例,替代了通常的生产功能。我将重点放在一般均衡的需求方面,介绍环境质量的需求收入弹性超过1的非同质偏好。我对比了两国之间的合作和非合作成果,表明在任何一种假设下,贫穷国家的减排努力都较低。当大国减排(扭转关于搭便车的通常论点)时,贫穷国家的情况可能会更糟,而就减排水平进行合作谈判可能不会带来任何好处。我指出“政策泄漏”,并表明边境税起反作用。自由贸易对环境有益,有几个原因。最后,我简要地探讨了谈判中的“问题联系”,以评估联系贸易和环境谈判的好处。

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