This paper presents a framework for analysing spatial aspects of environmentalpolicies in the regulation of trans-boundary externalities. A spatial priceequilibrium model for two regions is constructed, where interactions betweenthese regions can occur via trade and transport, via mutual...

Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implication for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries...