This paper uses a two-good specific factors model to derive a relationship between international trade, land degradation, and welfare. Because developing countries enjoy comparative advantage in agriculture, they will export agricultural goods. We found that trade could lower steady state land...

Erosion and sediments are among the most important externalities in the developing world. These sediments negatively affect the quantity and quality of water in the downstream regions of watersheds. In light with the growing interest in many developing countries to use market-based instruments,...