Theoretical and empirical aspects of policy failures due to subsidies are discussed in the context of international trade. A general classification of subsidies that cause environmental externalities is presented. The economic and environmental impacts of producer subsidies on international...

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...