Policy Reform and Optimal Policy Mix in a Polluted Small Open Economy with Tourism
Policy Reform and Optimal Policy Mix in a Polluted Small Open Economy with Tourism
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DOI:
10.1111/roie.12276
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发表时间:
2017-08-01
影响因子:
1
通讯作者:
Yanase, Akihiko
中科院分区:
文献类型:
--
作者:
Yanase, Akihiko
Effects of trade and environmental policies on a small open economy, with pollution generated in a sector producing nontradable services consumed by foreign tourists, are examined. The nontradable good is exported via tourism and the induced tourism terms-of-trade (TOT) effect becomes an additional source of distortion. An increase in tariffs can cause a TOT improvement and an increase in pollution simultaneously, affecting the condition for a welfare-enhancing tariff policy. In addition, the welfare effect of a pollution tax reform is strongly linked to whether the reform improves the tourism TOT. The interactions between tourists' spending and domestic welfare are also examined.