We explain the spatial concentration of economic activity when the cost of environmental policy – which is increasing in the concentration of pollution – acts as a centrifugal force, while positive knowledge spillovers and a site with natural cost advantage act as centripetal forces. We...

In a multi-country model with mobile capital and global pollution this paper analyzes self-enforcing environmental agreements (IEAs) when the coalition formed by the signatory countries plays Nash. In accordance with a previous environmental literature we show that there exists a unique...