This paper adds to the literature on transboundary pollution by considering pollution related to both production and … transboundary pollution to analyze the effects of trade liberalization on economic performance under two types of pollution. Our … pollution is considered. When trade liberalization policy is mutually implemented, consumer surplus and social environmental …

In a bilateral trade framework, we examine the impact of tariff reduction on the optimal pollution tax and social … welfare when pollution is transboundary. Strategic considerations lead countries to distort their pollution tax in the non …-cooperative equilibrium. Trade liberalization changes the distortion, and consequently the pollution tax and welfare, in ways that depend on …

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 … recipient chooses the fraction of aid allocated to pollution abatement and/or the emission tax rate. At this equilibrium, an …