This paper analyzes the impact of an ethanol import tariff in conjunction with a consumption mandate and tax credit. A tax credit alone acts as a subsidy to ethanol producers, equally benefiting exporters like Brazil. If an import tariff is imposed to offset the tax credit, world prices of...

Issues relating to the interaction of trade and the environment are a major international policy concern. They are likely to be a focal point during the next round of trade negotiations within the WTO. Free trade advocates contend that trade liberalization makes countries richer and as a result...