We build a two regions general equilibrium model with cross-border pollution and either international or only inter …-regional capital mobility. To control pollution each region uses public pollution abatement and issues either intra-regionally or inter … emission permits and we examine when and how cross-border pollution and the type of capital mobility affect these equilibrium …

-consistent policy rules that implement the stochastic first best as long as a future market exists. We apply our theory to carbon …

reductions in external damages are health benefits, highlighting the importance of accounting for co-pollution impacts of carbon … to reduce climate and health externalities. …

increase global abatement technology prices, reduce pollution abatement abroad and increase emission leakage. On the contrary …

We construct a two-country model where pollution from production is transmitted across borders. Pollution abatement is …

modelling of pollution and pollution abatement. We derive two key insights. First, if the national government implements a … permit system (equivalently, pollution taxes) that allow for emissions as in the first-best, cities chosen by local …-best emission policy and extensions to city asymmetries, a fiscal externality, local pollution, generalized commuting costs and …