This paper analyzes the impact of tariff liberalization and foreign direct investment on pollution from a plant …-level perspective. It considers how globalization impacts plant-level investment in pollution abatement expenditure. Popular hypotheses … on trade and pollution cite the pollution haven effect - that trade leads to a worsening of environmental conditions in …

effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first …-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the "standard" free riding …

We build a two regions general equilibrium model with cross-border pollution and either international or only inter …-regional capital mobility. To control pollution each region uses public pollution abatement and issues either intra-regionally or inter … emission permits and we examine when and how cross-border pollution and the type of capital mobility affect these equilibrium …

consequence rising emissions in non-regulating countries. This so-called pollution haven or carbon leakage effect is of particular …

Does environmental regulation impair international competitiveness of pollution-intensive industries to the extent that … they relocate to countries with less stringent regulation, turning those countries into "pollution havens"? We test this … demonstrate that externalities associated with FDI agglomeration can bias estimates away from finding a pollution haven effect if …

effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first …-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the 'standard' free …