Tariff Policy and Environmental Quality of Imports
Resource
經濟論文叢刊, 28(1), 043-072
Journal
經濟論文叢刊
Journal Volume
28
Journal Issue
1
Pages
043-072
Date Issued
2000-03
Date
2000-03
Author(s)
Kuo, H.I.
Hwong, H.
Abstract
In practice, the green tariff preference concept has often been applied to settle trade disputes relating to environmental protection. This paper analyzes the correlation between import tariffs and the environmental quality of imports. We find that it is ambiguous whether a lower tariff leads to a higher environmental quality of imports since the existence of this phenomenon hinges on the effects of the environmental quality of imports on the marginal utility of the imports. Specifically, if the better environmental quality of imports can mitigate the decline in the marginal utility of the imports, then a lower tariff necessarily raises the environmental quality of the imports; moreover, the quality will be even higher in the long run. This paper also investigates, in a slightly different setting, the effect of the environmental quality of imports on optimal tariffs. In general, if consumers are not conscious of environmental protection, then the optimal tariff policy is to levy a high (low) tariff on imports with low (high) environmental standards.
Subjects
關稅政策
環保品質
綠色關稅偏好 Tariff policy
Environmental quality
Green tariff preference
Type
journal article