We develop a two-country model in which each country contributes noncooperatively to the global environment by improving its local environment. We introduce an index of environmental awareness that measures the extent to which a country is aware of the global environment. Then we demonstrate...

This report presents an overlapping-generations model in which (1) pollution is generated as a by-product of capital, and (2) employment is rationed by monopolistic trade unions. We consider an environmental tax reform, consisting of a labor tax cut and the introduction of an environmental tax,...