Economic theory suggests that tariffs are welfare-superior to voluntary export restraints in the presence of perfect competition. However, with perfectly competitive markets, some authors have found that voluntary export restraints may be welfare superior to tariffs. The authors reconsider the...

Some governments are considering taxes on imports based on carbon content from countries that have not introduced climate change policies. Such carbon border taxes appeal to domestic industries facing higher charges for their own carbon emissions. This research demonstrates that there are...