From firm to global-level pollution control: The case of transboundary pollution

Transboundary Pollution and the Gains from Trade

We analyse the effects of transboundary pollution on trade patterns and welfare in a general equilibrium trade model. Production in a dirty industry generates pollution that negatively effects productivity, both at home and abroad, in a clean industry. Trade may lead to the spatial separation of production but the existence of transboundary pollution can offset the benefits from specialization....

Trade Liberalisation, Transboundary Pollution and Market Size

This paper uses a monopolistic competitive framework with many sectors to study the impact of trade liberalization on local and global emissions. We focus on the interplay of the pollution haven effect and the home market effect and show how a large-market advantage can counterbalance a high emission tax, implying that trade liberalization leads to lower global emissions. Generally, our results...

Firm Incentives to Promote Technological Change in Pollution Control: Comment

Technology diffusion, abatement cost, and transboundary pollution

This paper studies countries’ incentives to develop advanced pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. We are motivated in part by the problem of global warming: a solution to this involves providing a global public good, and will surely require the development and implementation of new technologies. We show th...

Environmental Regulation, International Trade, and Transboundary Pollution

It has often been argued that opening up the economy to increased international trade can transform a less developed economy into a developed economy. There is growing concern, however, about the environmental consequences of increased international trade. Typically, different countries have different environmental regulations and it is argued that the developed countries have more stringent en...