Is Environmental Tax Harmonization Desirable in Global Value Chains?

Cheng, Haitao; Kato, Hayato; Obashi, Ayako

Is Environmental Tax Harmonization Desirable in Global Value Chains?

Cheng, Haitao; Kato, Hayato; Obashi, Ayako

Discussion Papers In Economics And Business, 2020, 19-13-Rev., 1-39

Number of Access:508（2025-09-04 08:31 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/73194

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Title	Is Environmental Tax Harmonization Desirable in Global Value Chains?
Creator	CreatorName Cheng, Haitao
	NRID 1000030837703 1000030837703 ORCID 0000-0002-2063-8453 0000-0002-2063-8453 researchmap permalink 30837703 30837703 Scopus Author ID 57200115385 57200115385 CreatorName Kato, Hayato
	NRID 1000030528922 1000030528922 CreatorName Obashi, Ayako
Subject	Environmental policy
	Fragmentation
	Emission tax competition
	International coordination
	Trade in parts and components
Description	* Revised： [19-13 , 2019]
Abstract	The spatial unbundling of parts production and assembly currently characterizes globalization, leading to the worldwide dispersion of pollution. We consider socially optimal (cooperative) environmental taxes in a two-country model of global value chains in which the location of both parts and assembly can differ. When unbundling costs are so high that parts and assembly must colocate in the pre-globalized world, pollution is spatially concentrated, and harmonizing environmental taxes maximizes global welfare. In contrast, with low unbundling costs triggering the dispersion of parts and thus pollution throughout the world as today, harmonization fails to maximize global welfare. Similar results hold when the two countries non-cooperatively choose their environmental taxes.
Publisher	Graduate School of Economics, Osaka University
Source Title	Discussion Papers In Economics And Business
Volume (Issue)	19-13-Rev.
Page	1-39
Date of Issued	2020-05-09
Language	English
Handle URL	https://hdl.handle.net/11094/73194
NCID	AA1160366X
Relation.references	URI http://www2.econ.osaka-u.ac.jp/econ_society/dp/1913R.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	Discussion Papers In Economics And Business
Date.Updated	2020-05-09

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Discussion Papers In Economics And Business. 2020, 19-13-Rev., p. 1-39
DC.title	Is Environmental Tax Harmonization Desirable in Global Value Chains?
DC.creator	Cheng, Haitao
	Kato, Hayato
	Obashi, Ayako
DC.publisher	Graduate School of Economics, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2020-05-09
DC.relation' scheme='DCTERMS.URI	http://www2.econ.osaka-u.ac.jp/econ_society/dp/1913R.pdf
DC.subject	Environmental policy
	Fragmentation
	Emission tax competition
	International coordination
	Trade in parts and components
DC.description	* Revised： [19-13 , 2019]
DCTERMS.abstract	The spatial unbundling of parts production and assembly currently characterizes globalization, leading to the worldwide dispersion of pollution. We consider socially optimal (cooperative) environmental taxes in a two-country model of global value chains in which the location of both parts and assembly can differ. When unbundling costs are so high that parts and assembly must colocate in the pre-globalized world, pollution is spatially concentrated, and harmonizing environmental taxes maximizes global welfare. In contrast, with low unbundling costs triggering the dispersion of parts and thus pollution throughout the world as today, harmonization fails to maximize global welfare. Similar results hold when the two countries non-cooperatively choose their environmental taxes.
DC.format	73194
citation_title	Is Environmental Tax Harmonization Desirable in Global Value Chains?
citation_author	Cheng, Haitao
	Kato, Hayato
	Obashi, Ayako
citation_publisher	Graduate School of Economics, Osaka University
citation_language	English
citation_date	2020-05-09
citation_journal_title	Discussion Papers In Economics And Business
citation_volume	19-13-Rev.
citation_firstpage	1
citation_lastpage	39
citation_public_url	https://hdl.handle.net/11094/73194
citation_abstract_html_url	http://www2.econ.osaka-u.ac.jp/econ_society/dp/1913R.pdf

Is Environmental Tax Harmonization Desirable in Global Value Chains?

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