Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10477028 | Journal of International Economics | 2005 | 20 Pages |
Abstract
This paper examines the welfare effects of emission taxes under a choice between an international joint venture (JV) and a full-ownership FDI (Foreign Direct Investment) by parent firms from a developed country (the North) and a developing country (the South), as well as their location and share decisions. If the South has a poor abatement technology, its best policy is to impose a relatively high emission tax to attract a full-ownership FDI. If it has a good abatement technology, the best policy is to impose a relatively low emission tax to attract the JV. Furthermore, deregulation of foreign ownership of the JV improves the quality of the environment.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kenzo Abe, Laixun Zhao,