Baksi, Soham; chaudhuri, Amrita Ray - In: Economics Bulletin 29 (2009) 4, pp. 2605-2612
We examine the impact of freer trade on equilibrium pollution tax and welfare when markets are imperfectly competitive and pollution is transboundary. In the symmetric case, bilateral tariff reduction (i) strengthens environmental protection if and only if pollution is sufficiently harmful, and...