Expanding on a general equilibrium model of offshoring, we analyze the effects of a unilateral emissions tax increase … effect: While the emissions intensity of incumbent non-offshoring firms declines, the cleanest firms start offshoring …. Moreover, offshoring firms become dirtier, induced by a reduction in the foreign effective emissions tax in general equilibrium …

Expanding on a general equilibrium model of offshoring, we analyze the effects of a unilateral emissions tax increase … effect: While the emissions intensity of incumbent non-offshoring firms declines, the cleanest firms start offshoring …. Moreover, offshoring firms become dirtier, induced by a reduction in the foreign effective emissions tax in general equilibrium …

Expanding on a general equilibrium model of offshoring, we analyze the effects of a unilateral emissions tax increase … effect: While the emissions intensity of incumbent non-offshoring firms declines, the cleanest firms start offshoring …. Moreover, offshoring firms become dirtier, induced by a reduction in the foreign effective emissions tax in general equilibrium …

This study develops a two-country model, Home and Foreign, with offshoring and environmental spillover. A final good …