Application of the distance function to nonmarket valuation of environmental goods and services: An illustrative example [An article from: Ecological Economics]
Application of the distance function to nonmarket valuation of environmental goods and services: An illustrative example [An article from: Ecological Economics]

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This digital document is a journal article from Resource and Energy Economics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.Description: This paper studies the influence of free trade agreements on national environmental policies and location strategies of polluting firms. It is shown that banning export subsidies makes relocation of production more attractive for firms. When export subsidies are banned relocation is profitable because: (1) the rival firm reduces output due to more stringent emission regulation in the host country of the investment and (2) relocation leads to lower emission tax rate in the original home country of the investing firm. When export subsidies are used, the first effect is absent because the host government is able to use the export subsidy to compensate the negative effect of more stringent emission taxation on domestic shareholders.

  • Released: November 16, 2020
  • Author: D.V. Aiken
  • Rating: 4,9
  • Publisher: Ebook DIgital Agency
  • Total Page: 701 pages
  • File Size: 3670 KB

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