This paper investigates the relationship between trade liberalisation, consumers' environmental awareness and a negative environmental externality in consumption. We adopt an international Hotelling duopoly setup, where firms are located in two asymmetric countries. We find that, if the...

Food irrigated with untreated wastewater is considered low quality because of health hazards that they can produce. When consumers cannot distinguish food qualities, asymmetric information threatens the efficiency of local food markets. We examine in a sequential game whether prices can credibly...