We develop a North-South model of foreign aid and cross-border pollution resulting from production activities in the recipient country. There is both private and public abatement of pollution, the latter being financed through emissions tax revenue and foreign aid. We characterise a Nash...

This paper examines a simple North-South growth model where negative externalities may contribute to reinforce economic growth. Agents' welfare depends on three goods in the model: leisure, a common access renewable natural resource (one in each hemisphere) and a non-storable consumption good....

We develop a North-South model of international trade and transboundary pollution to analyze the relationship between environmental technology transfer and the South's incentive to sign a multilateral environmental agreement (MEA). First, we show that technology transfer could either increase or...