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(United States) and the South (China) in the presence of a global pollution externality. Each country's share of global … pollution depends on its share of world capital. The authors show that, if the disutility of pollution in the United States is … the increased pollution in China has global effects, the US may not benefit from the environmental restrictions and a …
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TradingSystem (EU ETS) covers emissions of many traded sectors. In a first step, we review how carbon leakage and the pollution …
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