model for climate policy analyses. It analyzes China’s accession to a Post Kyoto emission regime that keeps global emissions …, China will become a net seller of emission permits and steadily reduce emissions, possibly below their 2004 level until 2030 … on Chinese welfare will not significantly change when China joins the Post Kyoto regime …

Bilateral trade and capital flows have increased substantially between the United States and China yielding economic …) and the South (China) in the presence of a global pollution externality. Each country's share of global pollution depends … pressure on the US to raise environmental regulations on industry. Capital will move to China. Because the increased pollution …