Foreign Direct Investment and Environmental Taxes
2009 ◽
Vol 10
(1)
◽
pp. 115-135
◽
Keyword(s):
Abstract This paper studies the effect of foreign direct investment (FDI) on environmental policy stringency in a two-country model with trade costs, where FDI could be unilateral and bilateral and both governments address local pollution through environmental taxes. We show that FDI does not give rise to ecological dumping because the host country has an incentive to shift rents away from the source country toward the host country. Environmental policy strategies and welfare effects are studied under the assumption that parameter values support FDI to be profitable.
2014 ◽
Vol 18
(3)
◽
pp. 1
◽
Keyword(s):
2016 ◽
Vol 16
(3)
◽
pp. 245-267
◽
1986 ◽
Vol 2
(1)
◽
pp. 91-101
◽
Keyword(s):
2000 ◽
Vol 15
(4)
◽
pp. 565-584
◽
Keyword(s):
1975 ◽
Vol 10
(1)
◽
pp. 45-66
◽
2017 ◽
Vol 154
(1)
◽
pp. 119-155
◽