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AA00260492-20070001-0049.pdf
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| Title |
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A note on pollution intensity and the effect of tighter environmental policy on comparative advantage
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Yanase, Akihiko
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ヤナセ, アキヒコ
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Faculty of Economics, Takasaki City University of Economics, Takasaki, Japan
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Keio Economic Society, Keio University
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2007
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Keio economic studies
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44
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1
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2007
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49
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55
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This note reexamines the two-factor (capital and labor), three-sector (two final goods sector and a pollution abatement sector) model developed by Chua (2003, Oxford Economic Papers 55, 25-35). By redefining pollution intensity, this note shows that an increase in the pollution tax rate unambiguously raises the price of a pollutionintensive good as long as the other (i.e., less pollution-intensive) good is least capitalintensive.
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