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Low tariff on dirty goods—Environmental negligence or environmental concern?

Marjit, Sugata; Mukherjee, Arijit


Sugata Marjit


Shapiro (Quarterly Journal of Economics, 2021) conducts an in-depth empirical analysis to show that dirtier upstream goods face lower import tariffs than cleaner downstream goods. Inspired by that paper, we examine how the welfare maximising tariffs on the final goods will differ depending on the dirtiness and the extent of cross border pollution. We show that countries concerned about controlling pollution but maximising own welfare would be encouraged towards relatively unfettered import of dirtier final goods if pollution is mainly generated through domestic production. We discuss the implications of global welfare maximising tariff protection, pollution taxes and multiple tradable products.


Marjit, S., & Mukherjee, A. (2023). Low tariff on dirty goods—Environmental negligence or environmental concern?. Review of International Economics, Article 12662.

Journal Article Type Article
Acceptance Date Feb 5, 2023
Online Publication Date Mar 8, 2023
Publication Date Mar 8, 2023
Deposit Date Feb 6, 2023
Publicly Available Date Mar 8, 2023
Journal Review of International Economics
Print ISSN 0965-7576
Electronic ISSN 1467-9396
Publisher Wiley
Peer Reviewed Peer Reviewed
Article Number 12662
Keywords Pollution; Tariff; Welfare
Public URL
Publisher URL
Additional Information Received: 2021-07-13; Accepted: 2023-02-05; Published: 2023-03-08


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