International Process Standards and North-South Trade

Review of Development Economics

Posted: 10 Mar 1998

See all articles by Carlo Perroni

Carlo Perroni

University of Warwick - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Randall Wigle

Wilfrid Laurier University - School of Business & Economics; Balsillie School of International Affairs

Abstract

This paper examines the choice between alternative trade-based approaches to reducing global environmental damage, such as trade-related process standards and tariff-based approaches. Estimates of the effects of alternative policies are presented, using a calibrated global trade model with pollution externalities. Our findings are that both trade-related process standards and tariff-based policies are rather ineffective at reducing global emissions. The adoption of general process standards, however, might be exceedingly costly to developing countries.

JEL Classification: D58, F1, Q2

Suggested Citation

Perroni, Carlo and Wigle, Randall, International Process Standards and North-South Trade. Review of Development Economics. Available at SSRN: https://ssrn.com/abstract=62635

Carlo Perroni

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom
44 24 7652 8416 (Phone)
44 24 7652 3032 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Randall Wigle (Contact Author)

Wilfrid Laurier University - School of Business & Economics ( email )

Waterloo, Ontario N2L 3C5
Canada
226 772-3164 (Phone)

Balsillie School of International Affairs ( email )

67 Erb Street West
Waterloo, ON N2L 6C2
Canada
226 772-3164 (Phone)

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