Developing countries with comparative advantage in dirty industries face the risk of environmental degradation unless appropriate policy is implemented to curtail industrial emission. Using applied general equilibrium analysis, we examine how trade influences the transfer of environmental...

This paper examines the effects of a unilateral reform of the redistribution policy in an economy open to international trade. We set up a general equilibrium trade model with heterogeneous agents allowing for country asymmetries. We show that under international trade compared to autarky, a...