Is trade liberalization contributing to cleaner production amongst manufacturing firms? Theoretical predictions and empirical evidences are mixed. This study utilizes China's dual trade regime and China's WTO entry in 2001 to construct a unique micro dataset on manufacturing firms for China for...

In our analytical general equilibrium model where two polluting inputs can be substitutes or complements in production, we study the effects of a tax on one pollutant in two cases: one where both pollutants face taxes and the second where the other pollutant is subject to a permit policy. In...

This paper investigates the impact of foreign trade on China’s pollution emissions using an input-output model. General y speaking, as exports are more pollution-intensive than imports, foreign trade helps reduce China’s emissions. Given the huge surplus of trade in goods and declines in the...