Pollution Tax and Foreign Direct Investment

• Main Authors: Lin,Wan-Ru, 林婉如
• Other Authors: Chen,Hong-Yi
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/47209233045126880992

碩士 === 東吳大學 === 國際經營與貿易學系 === 103 === With the development of global economic, pollution tax is becoming more and more important today. This study assumed that there are two asymmetrical market size countries. If under the closed economy, the optimal pollution tax will increase as the environmental damage increase and the country which its market size is relatively large will be charged less optimal pollution tax. On the contrary, the small one will be charged more of it. When starting trading, results show that the pollution tax of the country which has relatively large market size is still less than the small one. But we can find out through the comparison that under a specific environmental damage, the optimal pollution tax will increase because of free trade. If a multinational firm invests in a large-scale country, the larger market size the country is, the more the pollution tax will be charged. If a multinational firm invests in a relatively small-scale country and when environmental damage is reaching a large level, the optimal pollution tax of the country which its market size is relatively small will become more than the large one.