The effects of corporate environmentalism are examined in the framework of strategic environmental and trade policies. An environmentally conscious domestic firm competes with a profit-maximizing foreign firm in a third-country market. When emission taxes and export subsidies are both available,...

We examine the optimal R&D subsidy/tax policy under a vertically differentiated duopoly. In a significant departure from the existing work, we consider the case of asymmetric costs of product R&D where there is a small technology gap between firms. In our analysis, the endogeneity of quality...

We examine the strategic use of recycled content standards (RCSs) under international duopoly. RCSs require firms supplying the domestic market to use a certain proportion of recycled materials as inputs. We demonstrate that, when there is no trade in recycled materials, two identical countries...

This paper examines trade and welfare effects of biotechnology. While biotechnology lowers production costs, it also lowers perceived quality of products. Without labelling, consumers cannot distinguish between biotechnology and conventional products. In a simple general equilibrium model of...

This paper examines strategic motives to impose mandatory labelling of biotechnology products when consumers perceive these products as being of lower quality. When a foreign dominant firm produces a biotechnology product, it is shown that without mandatory labelling fringe firms, which produce...