We first review the literature relating to the protection of the modern sector in developing countries (DCs). We then discuss the connections between protection, economic dualism, and optimal environmental policy in DCs. Next, we construct an intertemporal model of the environmental policy...

We first examine the literature pertaining to the protection of the modern sector in developing countries (DCs). We then discuss the nexuses between protection, economic dualism, and optimal environmental policy in DCs. Next, we build a dynamic model of the environmental policy formulation...

We study environmental policy in a two nation world in which there is strategic behavior by governments and polluting firms. Two issues are analyzed. First, the conditions under which the conduct of unilateral environmental policy by a nation in a Bertrand game will immiserize that nation, are...