Environmental Regulation、Green R&D Subsidy And Strategic Green Trade Policy

With global environmental issues being increasingly serious, the relationship between trade and environment has received widespread concern. Governments tries to bring the subsidies of clean technologies R&D, taxes of environment pollutant and other strategic environmental into the country’s industrial and trade policy. Yet, existing academia studies mostly pay attention to a certain kind policy (mixed) effect, ignoring the comparative study of different policies. This paper attempts to construct a theoretical model to compare the effects of different policies, in order to explore a set of either improve their social welfare, and can effectively protect the domestic market competitiveness of enterprises, strategic combination of green trade policy tool. This not only opens up a new perspective of strategic trade policy theory, but also makes the study of this article has significant practical significance.By constructing a three countries two firms game model, this paper tries to make a comparative study of policy differences concerning separate strategic environmental taxes and using strategic environmental taxes and green R&D subsidies combination. The main conclusions are:(1) the policy effect of mix use of environmental taxes and green R&D subsidies is better than that of using the environmental taxes alone. When using mixed strategic environmental policies, it is not only helpful to protect the competitiveness of domestic enterprises, but also can improve the country’s environmental standards.(2) The study shows that the relationship between premise of "Porter Hypothesis" and the establishment of corporate R&D capacity. When the corporate has strong capabilities, a more stringent national environmental regulation will drive corporate to enforce more investment; on the contrary, R&D investment and environmental regulation has a inverted U-shape curve.The innovation of this paper is to introduce a "strategic green trade policy" concept. By building an explicit function of the game model, with environmental damage function included, the paper make a comparison study of different policies. Meanwhile, most of existing academia studies focus on whether Porter Hypothesis holds, this article tries to find how to improve the establishment of "Porter hypothesis".