FORSLID, Rikard; Toshihiro, OKUBO; SANCTUARY, Mark - Research Institute of Economy, Trade and Industry (RIETI) - 2015
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...