Revenue-neutral environmental tariff reform, growth, and welfare

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This paper analyzes the growth and welfare effects of revenue-neutral tariff reform in a small open endogenous growth model with environmental externalities. As is the case in countries that depend primarily on imported energy, the employment of a foreign intermediate good causes negative environmental externalities in production. This paper shows that substituting a tariff on the foreign intermediate good for a tariff on the foreign consumption good in a revenue-neutral way raises the growth rate and the welfare, if the environmental externality is sufficiently strong and if the elasticity of substitution between inputs lies within a certain range.

Original languageEnglish
Pages (from-to)985-996
Number of pages12
JournalReview of International Economics
Volume13
Issue number5
DOIs
Publication statusPublished - 2005 Nov
Externally publishedYes

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revenue
welfare
reform
substitution
endogenous growth
energy
elasticity
cause
externality
tariff
intermediate goods
consumption
effect

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Revenue-neutral environmental tariff reform, growth, and welfare. / Naito, Takumi.

In: Review of International Economics, Vol. 13, No. 5, 11.2005, p. 985-996.

Research output: Contribution to journalArticle

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