The visible encroachment of industrial development on the environment, and its unintended consequences, has increased public demand for better environmental management and policy. As policy makers struggle to meet these demands, empirical analysis of the effects of environmental policies is...

Two seemingly unconnected empirical results suggest an intriguing mechanism. First, economic integration helps harmonize prices internationally, with trade being the primary channel (Rogoff 1996, Goldberg and Knetter 1997). Second, monetary union may greatly increase the amount of trade among...