Rissho University
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『法華経』Gilgit 写本 ・ Kashgar 写本 ・ Farhād-Bēg 写本の新翻刻研究: XV“Tathāgatāyuspramāna-parivartah”
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Teaching English Verbs Corresponding to High-Frequency Japanese Verbs
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Production Relocation and Optimal Environmental Policy under Monopolistic Competition
Get PDFThis study investigates how an environmental policy in one country affects the number of varieties and the price levels of differentiated goods produced and characterizes the optimal level of environmental policy in the country. First, a two-country, two-sector monopolistic competition model of international trade is developed, in which the production of differentiated goods generates transboundary pollution. The study further demonstrates that the existence of a positive pollution tax reduces the number of varieties of differentiated goods produced in both countries and the world. Then, the study demonstrates that the price level rises with an increase in one country’s pollution tax rate and falls with an increase in the pollution tax rate of the other country. Furthermore, the optimal level of pollution tax deviates from the efficient Pigovian level depending on two factors: the tax–income effect and the terms of trade–price level effect.departmental bulletin pape