This paper analyzes the effects of environmental policy on employment (and unemployment) using a new general-equilibrium two-sector search model. We find that imposing a pollution tax causes substantial reductions in employment in the regulated (polluting) industry, but this is offset by...

This paper analyzes the effects of environmental policy on employment (and unemployment) using a new general-equilibrium two-sector search model. We find that imposing a pollution tax causes substantial reductions in employment in the regulated (polluting) industry, but this is offset by...

Developing countries in Asia face a variety of environmental challenges. Although environmental economics grew mostly out of the experience of developed countries, decades of environmental economics research offer important and useful lessons for environmental regulation in developing countries...