Environmental economics
10 important questions on Environmental economics
What are the three effects of trade liberalization according to Copeland and Taylor, and which and why do these effect offset each other
scale and technique will offset each other.
changes in pollution mainly driven by changes in composition. As dirty firms will probably exit the market or continue their business in developing countries.
Scale: higher economic growth leads to higher income, leads to the technique effect that demands stricter environmental regulation, therefore the two effects offset each other.
What is the technique effect and did this effect influenced the decline of US emissions
What is the relationship between productive firms and emissions, and how does trade liberalization influence this?
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What is the biggest critique on past decomposition theories?
What is the scale effect according to Coppeland and Taylor
What is the composition effect according to coppeland and taylor and what two factors influence his effect
this is due to
differences in factor endowments. Labor (L) vs Capital (K). Free trade increases the pollution of the developing countries.
Differences in pollution policy.
What is the technique effect and is this effect seen in real life?
example, in the USA, the 1970s introduction EPA, and currently European citizens are urging for a cleaner environment.
What is the effect of international trade agreements on emissions?
What is the difference between across-firm and within-firm adjustments in a trade liberating setting with fixed environmental regulations?
-Across-firm is about how the overall market changes. Low productivity and dirty firms can exit the market. A change in trade costs changes the profitability of many firms.
Why is it wrong to assume a industry wide emission intensity (Ei) is exogenous?
since this varies with type size and the number of firms.
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