that affect physical and human capital formation, pollution taxes that affect environmental degradation, and regeneration … abatement knowledge relative to pollution. First, either of these two extensions can reverse the prior finding that pollution …. Fourth, we show whether a greater need for public spending leads to greater increases in the distorting tax or pollution tax …

We develop a simple two-sector dynamic model to examine the effects of international trade in the presence of pollution …-created cross- sectoral production externalities. We assume that the production of 'Smokestack' manufactures generates pollution … is non-convex. Pollution provides a motive for trade, since trade can spatially separate incompatible industries. Two …