Ludema, Rodney D.; Takeno, Taizo - In: Canadian Journal of Economics 40 (2007) 4, pp. 1100-1117
This paper examines the effect of a tariff on the decision of a foreign monopolist to adopt `clean' technology, which reduces the flow of a negative cross-border externality. The clean technology increases the marginal cost of production relative to the dirty technology, but only the firm knows...