We investigate in a horizontal product differentiation model with North-South trade the implications of a home bias in consumers' demand for labelled goods. We compare mutual recognition and international harmonisation of ecological labels with respect to firms' profits and welfare. Northern...

To assess the effect of environmental policy on production structures, trade structures or foreign direct investment, a measure for the stringency of policy is necessary. Measures typically used in empirical studies share several disadvantages: They are not available on a sectoral basis to...

We examine how different renewable energy support policies affect innovation in solar and wind power technologies. The analysis is conducted using policy and patent data for a large sample of 194 countries and territories. The policy data allows distinguishing two dimensions of regulation, i.e....

The findings of empirical studies on the question whether endowments with natural resources are a curse or a blessing are ambiguous. The majority of studies found that resource rich countries grow slower than their resource scarce counterparts (“resource curse”). In recent studies, this...

This paper provides a theoretical model that explains the empirical observation that foreign banks from industrialized countries tend to increase their involvement in emerging markets during periods characterized by instabilities. In this model, domestic banks have more 'soft' information about...