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 surveys the literature on the relationship between international trade in goods and the factors and the environment. Traditional approaches based on the Heckscher-Ohlin trade model and more recent models looking at non-competetive market structures are discussed. Moreover, the paper...