国际外包，环境成本和福利（英文）.docxVIP

；ADB Institute ADBI Working Paper Series INTERNATIONAL OUTSOURCING, ENVIRONMENTAL COSTS, AND WELFARE Jai-Young Choi and Eden S. H. Yu No. 848 June 2018 Asian Development Bank Institute Choi and YuADBI Working Paper 848 Choi and Yu where Di (/ =1, 2) is the consumption of the two goods, and U is a strictly quasiconcave utility function, t/(D,,D2) U. Note that the expenditure function is derived by minimizing the expenditure subject to a utility constraint. 3. OUTSOURCING, ENVIRONMENTAL COSTS, INTERNALIZATION, AND WELFARE The economys budget constraint stipulates that the total value of expenditure is determined by the value of national income: E(P，U) = I,(5) where /[= pX、+ X2denotes the national income expressed in terms of good 2. free trade is assumed so that the domestic prices and the international prices of the traded goods are synchronized at the ratio of p. Totally differentiating (5), we obtain the expression for the welfare effect of outsourcing occurring in the two sectors (dW). dW = EydU = pdX] +dX2 -Exdp-bxd\ -b2dA2 一(4 一1)曲一(4 -l)db2(6) where Ep =dE/ dp = and E}= D}- denotes the excess demand in sector 1. Now suppose that an autonomous outsourcing takes place via the firms in sector 1, i.e., A1, 四 0, A2 = 1, and dA = 0. Note that the outputs of the two industries are directly affected by the outsourcing and indirectly affected by the adjustment in the terms of trade, as consequent to the outsourcing. We may postulate thatx, = Xj(A，p) so that也与+阳dp ,/=1)2.⑺ d\ 朋 dp dA1 The first term (on the right-hand side) captures the direct output effect of outsourcing, and the second term indicates the indirect output effect caused by a change in the terms of trade. Now, we are ready to analyze the welfare effect of outsourcing in sector 1. Differentiating (6) with respect to A and using (7), we obtain the expression for the welfare effect of the outsourcing occurring in sector 1: 8 This assumption is made solely for simplicitys sake. The analysis of outsourcing i