The response of a monopolistic polluter to the imposition of an emission tax and its welfare implications are examined. The cases of output reduction as the sole means for pollution control and of additional means being feasible are considered. It turns out that in the second case the tax may...

International cooperation on climate change and trade is intensifying, as highlighted by numerous initiatives launched at the multilateral, plurilateral, and bilateral levels. This is an encouraging development, signaling the major role of trade policy in supporting decarbonization efforts and...