Hatzipanayotou, Panos; Lahiri, Sajal; Michael, Michael S. - 2000
We develop a North-South model of foreign aid and cross-border pollution resulting from production activities in the … recipient country. There is both private and public abatement of pollution, the latter being financed through emissions tax … recipient chooses the fraction of aid allocated to pollution abatement and/or the emission tax rate. At this equilibrium, an …
