In this paper, we investigate the effects of an increase in emission tax, a decrease in fixed manufacturing wage rate, and an increased inflow of foreign workers on competitive wages, the environmental stock, the economic welfare of the representative consumer, and employment in the presence of...

We develop a two-country model with two industries: the smokestack manufacturing industry, which generates pollution, and the transboundary renewable resource industry. With no trade, migration occurs from the foreign country, with lower manufacturing productivity, to the home country. If the...