Implementing environmental taxes on intemediate goods in open economies

Implementing environmental taxes on intemediate goods in open economies Poterba, James M.; Rotemberg, Julio Many proposed and actual environmental taxes are taxes on intermediate goods. These goods, such as fossil fuels, are typically tradable, and they are also used in the production of many tradable final goods. How should imports of intermediate and final goods be taxed if the government does not want environmental tax policy to alter the competitive positions of domestic and foreign producer