We examine the effects of a proposed environmental tax in a small open developing economy, using an applied general equilibrium model linked to a household survey database. The burden of the tax, applied primarily to fossil fuels, is passed forward by non-traded industries and backward by...

Many developing countries possess comparative advantage both in natural resources and in labor-intensive industries, and experience both industrial pollution and natural resource degradation. We present a model that incorporates these stylized facts together with key spatial features and...