This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are possible: (i) one with unilateral FDI, where one firm is...

"This book examines the economic and political aspects of green trading and energy use from a global perspective. It also highlights the issues related to carbon trading, carbon credit, diplomatic conflicts in implementing environmental policies, energy use and energy efficiency, and the impact...