We consider a North-South model of capital mobility in which foreign investment adversely impacts the environment in South. By focusing on the strategic aspects of environmental policies, among other things, we compare different policy regimes, i.e., different combinations of tax and quota. More...

A basic two-country, single commodity model is considered to formulate the interactive and retaliative policies with regard to restrictions on foreign investment and labor migration. We model quota retaliations using the contingent threat situation. Under three different strategic environments,...