Optimal Environmental Policy under Endogenous Terms of Trade and Economic Growth

Alejandro Sampaolesi

School of Economics, University of Business and Social Science, Buenos Aires, Argentina.

DOI: 10.4236/tel.[phone]                

Abstract

The aim of this work is to depict the main characteristics of the optimal environmental policy under endogenous terms of trade and economic growth. Here, endogenous terms of trade are inferred from the price of an aggregate consumption good. Our results show that when emissions of a global pollutant affect the environment and, therefore, the utility of the economic agents, the optimal policy consists in a pollution tax on production.

Keywords

Growth, Trade, Environment, Political Economy

Conflicts of Interest

The authors declare no conflicts of interest.

References

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