In this paper, we argue ’buying local’ does not necessarily reduces transport-related greenhouse gas emissions even if transport and production technologies, as well as natural endowment are homogeneous in space. We develop a model of rural-urban systems where the spatial distribution of...

This paper develops a model of trade and CO2 emissions with heterogenous firms, where firms make abatement investments and thereby have an impact on their level of emissions. The model shows that investments in abatements are positively related to firm productivity and firm exports. Emission...

Recent empirics suggest the relevance of transport cost reductions for world trade growth along with eliminations in protectionist trade barriers. To address the welfare effects of trade cost reductions in a context of `trade and the environment,' we develop a two-stage game model where...

We construct a model of strategic environmental policy with flexible regulation in an international duopoly context. Firms can affect future environmental regulation through a prior investment in abatement. We demonstrate that the strategic use of environmental policy leads to lower welfare and...

We examine the welfare consequence of emissions tax with and without a Border Tax Adjustment for an imperfectly competitive industry, where intra-industry trade arises between countries. BTA allows a government to impose a pollution-content tariff on imports and refund an emission tax for export...

We analyze subglobal action to mitigate climate change with a consideration of recent advances in the theory of international trade. Subglobal action impacts emissions in unconstrained countries (carbon leakage) through international trade channels. Consequently, estimates of the efficacy of...

We examine the welfare consequence of emissions tax with and without a Border Tax Adjustment for an imperfectly competitive industry, where intra-industry trade arises between countries. BTA allows a government to impose a pollution-content tariff on imports and refund an emission tax for export...

This paper develops a theoretical model of trade and environmental emissions with heterogeneous firms, where firms make abatement investments and thereby affect their level of emissions. We show that investments in abatement are positively related to firm productivity and firm exports, while...

The economic literature on trade and environment seeks empirically test hypotheses about how trade affects the environment that is crucial for resolving current policy debates. Applying panel data technique we examine the impacts of globalization on pollution level, pollution intensity and...