to environmentally sensitive industries increases output and pollution emissions. We examine the environmental effects of … pollution emissions if resources are moved to an industry for which emissions intensity is high enough to overcome the reduction … in the long run. Finally, we examine the relationship between growth and the environment with subsidies. Under more …

develops technologies which reduce the cost of pollution abatement. The innovating firm can patent this innovation and use a … either a pollution tax or a marketable permit. However, the returns to the innovator from innovation are not the same under …