Ferrara, Ida; Missios, Paul; Yildiz, Halis Murat - In: Canadian Journal of Economics 47 (2014) 3, pp. 905-952
In this paper, we compare endogenous environmental policy setting with centralized and decentralized governments when regions have comparative advantages in different polluting goods. We develop a tworegion, twogood model with interregional environmental damages and perfect competition in...