OPTIMAL ENVIRONMENTAL POLICIES UNDER UNCERTAINTY, TRANSBOUNDARY POLLUTION, AND GLOBALIZATION

Abstract: 

Real world evidence has made it abundantly clear that growth, international trade and the quality of the global environment are strongly interweaving. This interweaving relationship has become the central issue in various fora of international negotiations and in bilateral and multilateral agreements among individual countries.

The main objectives of this research proposal are:

  1. to study the importance of uncertainty and public finance to the welfare ranking of three environmental policy instruments: pollution taxes, pollution permits and Kyoto-like numerical rules for emissions. The efficiency of alternative environmental policies in the presence of economic and environmental uncertainties, and tax-financed public abatement, is examined firstly in a stochastic neoclassical growth model, secondly in a strategic trade model of international duopoly, and thirdly in a general equilibrium model with two large open economies,
  2. to examine within a general equilibrium model with endogenous terms of trade the responses of environmental policies to bilateral tariff reductions due to international agreements, when governments have incentive to use environmental policies strategically as a second best instruments for trade and carbon leakage purposes,
  3. to explain, within economic geography models, how pollution externalities in production, transportation costs, spatial inhomogeneity and the concentration of pollution affect the location of economic activity,
  4. to test empirically first, the potential existence of strategic interactions in fiscal and environmental policy between OECD countries over the period 1990-2005, second, the input-output efficiency of environmental policy in a sample of 130 countries over the period 1990-2005, and third, the political and institutional determinants of environmental policy efficiency.

Project info

Acronym:
OEPUTG
Coordinating Institution:
University of Ioannina
Scientific Coordinator:
Adam Antonis
Research Team 2 Leader:
Hatziavramidis Dimitris
Research Team 3 Leader:
Philippopoulos Apostolis

Stats

I.D.:
136
Mis:
379430
Duration (months):
47
Budget:
600 000.00
Diavgeia:
ΑΔΑ: Β4Λ59-ΤΞ0

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