1 Environmental Taxation in Open Economies: Trade Policy Distortions and the Double Dividend** Sjak Smulders* Tilburg University Fellow of the Royal Netherlands Academy of Arts and Sciences This version: July 4, 1999 Forthcoming in: "International Environmental Economics: A Survey of the Issues", edited by G. Schulze and H. Ursprung, Oxford: Oxford University Press, Chapter 8. running head: Environmental Taxation in Open Economies * Correspondence: Department of Economics, Tilburg University, P.O.Box 90153, 5000 LE Tilburg, The Netherlands, e-mail: J.A.Smulders@kub.nl. ** The author wants to thank Lans Bovenberg, Partha Sen, Guenther Schulze and an anonymous referee for useful comments on an earlier draft.