Developing countries with comparative advantage in dirty industries face the risk of environmental degradation unless appropriate policy is implemented to curtail industrial emission. Using applied general equilibrium analysis, we examine how trade influences the transfer of environmental...

Using a detailed calibrated general equilibrium model, we evaluate the effects of greater cooperation or confrontation in bilateral trade relations between the U.S. and Japan. Our numerical results indicate that, if a trade war between the two were precipitated, the U.S. would eventually benefit...