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Weak environmental regulation has global consequences. When domestic regulation fails, the international community can intervene by targeting emitters with import tarifs. I develop a dynamic empirical framework for evaluating import tarifs as a substitute for domestic regulation, and I apply it to the market for palm oil, a major driver of deforestation and one of the largest sources of emissions globally. Coordinated, committed tarifs reduce emissions by 39% relative to 40% under domestic regulation, but free-riding concerns undermine coordination and static incentives undermine commitment. Alternatives include unilateral EU action and a domestic export tax, which reduce emissions by up to 6% and 39%. The export tax generates significant revenue at the expense of foreign consumers and is fiscally appealing independent of emission concerns.

Environmental Economics Seminar Series

Every Monday from 4.05 to 5.05 pm in Michaelmas Term

In person details: Manor Road Building Skills Lab - Tea and cake will be served 15 minutes beforehand.

Zoom details: Zoom link - Meeting ID: tbc - Password: 111133

For further information please contact Fulvia Marotta:


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