Countries apply lower tariffs on products by high-emitting "dirty" industries

This is important because one of top arguments for tariffs in a globalized world is to disincentivize anyone from undercutting prices by committing environmental or labor rights violations. Example: US timber companies have to follow environmental laws and pay a living wage. But their competitors overseas might not so they can flood the market with cheap timber. A tariff can level the playing field so that US companies can compete in the US market without stooping to illegal&#x2F;immoral behavior.<p>That&#x27;s probably the only plausible theory I&#x27;ve heard for the place of tariffs in a free market. But this paper shows that it&#x27;s not happening that way in practice. Exactly the opposite. Countries seem eager to benefit from exploitation as long as it happens outside their borders.

(2020)