Forslid, Rikard; Okubo, Toshihiro; Ulltveit-Moe, Karen … - Nationalekonomiska institutionen, Stockholms Universitet - 2015
This paper develops a theoretical model of trade and environmental emissions with heterogeneous firms, where firms make abatement investments and thereby affect their level of emissions. We show that investments in abatement are positively related to firm productivity and firm exports, while...