TRADE LIBERALIZATION, PUBLIC ABATEMENT, AND WELFARE |
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| Authors: | Takumi Haibara |
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| Affiliation: | Graduate School of International Cooperation Studies, Kobe University, Kobe City, Japan |
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| Abstract: | This paper discusses public abatement financed by pollution tax revenue or tariff revenue and investigates the welfare consequences of a tariff. The main result of this paper is that under certain conditions a tariff reduction results in an improvement in welfare through an increase in public abatement and a decrease in pollution. This result may guide policy for countries that wish to harmonize trade liberalization and the environmental protection demonstrated by both the private and the public sectors. |
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