pollution depends on its share of world capital. The authors show that, if the disutility of pollution in the United States is … (United States) and the South (China) in the presence of a global pollution externality. Each country's share of global … the increased pollution in China has global effects, the US may not benefit from the environmental restrictions and a …

on its share of world capital. We show that, if the disutility of pollution in the United States is high, there will be …) and the South (China) in the presence of a global pollution externality. Each country's share of global pollution depends … pressure on the US to raise environmental regulations on industry. Capital will move to China. Because the increased pollution …