ECON 381 Lecture Notes - Lecture 9: Montreal Protocol, Eviction, Macd
24 Dec 2015
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International issues (international trade policy & the environment) Paris climate change summit november 30th. Indonesian forest fires (draining and burning peat land spillover impacts on other se asian countries): http://www. economist. com/news/asia/21677342-jungles-and-peatland-are-coughing-up-more-carbon- emissions-industrialised-economies-south-east. Victoria -wa state raw sewage dispute: http://www. seattletimes. com/opinion/editorials/sewage-treatment-victorias-constipated-political-process- needs-fixing/ Pollution crosses boundaries leads to interesting enforcement issues. Trade policy affects environmental quality (how?) and environmental policy affects trade flows. Interesting because there is no higher level of government to appeal to solutions must be in the best interest of all parties i. e. agreements must be incentive-compatible. (this may require side-payments and/or threats) 2: spillovers pollution generated in one country that spills over into another. Key point is that a small number of jurisdictions are involved: mutual externalities. Many emitters, many recipients (global warming, ozone depletion, etc. ) Simple case: one emitting country & one recipient country. All emissions originate in one country the domestic country. If the polluting country sets environmental standards to achieve domestic efficiency regulation will result in e*d.
