National Treatment and the optimal regulation of environmental externalities

Gulati, Sumeet; Roy, Devesh

doi:10.1111/j.1540-5982.2008.00511.x

Cited by 31 publications

(37 citation statements)

References 20 publications

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“…The numerator is interpreted as the cost of meeting the standard σ. As in Gulati and Roy (2008), this function is increasing and strictly convex (φ σ > 0, φ σσ > 0), with φ(0) = 0. 8 The denominator, ψ(σ), captures the benefit accruing to the producer that meets a standard σ.…”

Section: Theoretical Modelmentioning

confidence: 99%

“…A standard might correct for a market failure, it might be imposed as a beggar-thy-neighbour policy, it might respond to equity concerns or it might address political economy considerations. While the Gulati and Roy (2008) model explicitely models the standard as a policy to correct for a market failure (namely, a pollution externality generated by the consumption of good 1), we do not need to specify the rationale for the standard in this context.…”

Section: Theoretical Modelmentioning

confidence: 99%

“…To begin with, we assume that the standard only entails a cost for producers, as in Gulati and Roy (2008).…”

Section: Costly Standardsmentioning

confidence: 99%

“…Our model uses the basic set-up of Gulati and Roy (2008). Let 'Home' be a small open economy with perfectly competitive markets.…”

Section: Theoretical Modelmentioning

confidence: 99%

“…12 Unlike Gulati and Roy (2008), we assume that foreign exporters need to meet the same standard σ, rather than a foreignspecific standard σ * , to be able to export good 1 to the home market. The function φ * (⋅) is, like φ(⋅), increasing and strictly convex (φ * σ > 0, φ * σσ > 0), with φ * (0) = 0.…”

mentioning

confidence: 99%

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Trade Policy Substitution: Theory and Evidence from Specific Trade Concerns

Beverelli,

Boffa,

Keck

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Manuscript date: 29 October 2014Disclaimer: This is a working paper, and hence it represents research in progress. The opinions expressed in this paper should be attributed to its authors. They are not meant to represent the positions or opinions of the WTO and its Members and are without prejudice to Members' rights and obligations under the WTO. Any errors are attributable to the authors. Trade Policy Substitution:Theory and Evidence from Specific Trade Concerns * Cosimo BeverelliMauro Boffa Alexander Keck AbstractWe investigate to what extent the probability that a Specific Trade Concern (STC) is raised in the WTO against a Member in a given sector is affected by past reductions in applied tariffs. Employing an identification strategy based on 'new measures', we find evidence of a substitution of non-tariff measures for tariffs both in the sample of TBT and in the sample of SPS concerns. While in the SPS sample this result holds both among developed and developing economies, in the TBT sample such 'trade policy substitution' only occurs when the country maintaining the measure at issue is economically developed.These results are consistent with our theoretical model, which predicts policy substitution between tariffs and standards in economies where meeting such standards is relatively less costly and in sectors where meeting such standards is relatively more important from the perspective of producers.

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Section: Theoretical Modelmentioning

confidence: 99%

Section: Theoretical Modelmentioning

confidence: 99%

“…To begin with, we assume that the standard only entails a cost for producers, as in Gulati and Roy (2008).…”

Section: Costly Standardsmentioning

confidence: 99%

“…Our model uses the basic set-up of Gulati and Roy (2008). Let 'Home' be a small open economy with perfectly competitive markets.…”

Section: Theoretical Modelmentioning

confidence: 99%

mentioning