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This paper shows that, counter-intuitively, a higher elasticity of substitution in model production function can lead … to reduced economic resilience and larger vulnerability to shocks in production factor prices. This result is due to the … fact that assuming a higher elasticity of substitution requires a recalibration of the production function parameters to …
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This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and R&D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between...
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The paper analyzes the welfare properties of voluntary agreements (VA) with polluters, when they are obtained under the legislative threat of an alternative stricter policy option. In the model, the threat is an abatement quota. Both the threat and its probability of implementation are...
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Standard non-cooperative game theoretical models of international environmental agreements (IEAs) draw a pessimistic picture of the prospective of successful cooperation: only small coalitions are stable that achieve only little. However, there also exist IEAs with higher participation and more...
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