standard imposed by one country to curb local pollution there. We show that such unilateral policy adopted by the high …-quality country aimed at lowering domestic pollution may not be a step in the right direction as they may raise global pollution …. However, in the presence of consumer awareness regarding global pollution, a standard imposed by the high-quality country will …

water pollution than in industries with less water pollution in the UPR regions. The second RED policy with environmental … regulations was effective in restraining the new entry of firms in high-pollution industries into the UPR regions but failed to … drive existing high-pollution firms out of the UPR regions. Firms’ location decisions were driven by the more favorable tax …