There has been considerable controversy over the empirical significance of the theoretically predicted pollution haven hypothesis. Generally, empirical papers have failed to find an effect on industrial location of weaker or stricter environmental regulations. In this paper we find confirmation...

The environment and economics -- Normative and positive economic analysis -- Social choice : how much environmental protection? -- Efficiency and markets -- Market failure : public goods, public bads, and externalities -- Making decisions about environmental programs -- Demand for environmental...

"This paper develops a simple model of a polluting industry and an innovating firm. The polluting industry is faced with regulation and costly abatement. Regulation may be taxes or marketable permits. The innovating firm invests in R&D and develops technologies which reduce the cost of pollution...