This article deals with the impacts of national environmental taxes on economic efficiency when pollution is global. We propose a dynamic, two-country model where the use of a non-renewable resource generates emissions accumulating in a world stock of atmospheric pollution. We assume that the...

This paper proposes a Schumpeterian growth model generalizing the existing theory: we exploit the Salop (1979) formalization of circular product differentiation to take into account the fact that knowledge can diffuse variously among R&D sectors, ranging from local to global diffusion. We...