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GTAP Resources: Resource Display

GTAP Resource #1037

"Environmental Regulations, International Trade and Strategic Behavior"
by Alpay, Savas

In this paper, the issue of strategic behavior in the presence of environmental regulations and international trade is investigated. In a two-country, one-good, two-producer model as in Ulph (1996), we analyze the Nash equilibrium of the game where governments may behave strategically in choosing their environmental policies, and producers may behave strategically in choosing their R&D investments. In the simultaneous-move game, there is a unique equilibrium and both governments and producers act strategically. In the sequential-move game, two equilibrium sets of actions are present; however, one of them welfare-dominates the other: first-moving government acts strategically, the follower government will not act strategically, and none of the producers will behave strategically. Some of our results are in contrast with the implications of earlier papers in this literature.

Resource Details (Export Citation) GTAP Keywords
Category: 2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Created: Alpay, S. (4/30/2002)
Updated: Bacou, M. (7/2/2002)
Visits: 3,027
No keywords have been specified.

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