This paper investigates how economies of scope in multi-product firms interact with comparative advantage in determining the effect of trade liberalisation on resource reallocation, using Belgian manufacturing firm- and firm-product-level data over the period 1997-2007. We first provide evidence...

In this paper, we use a computable general equilibrium model (WIATEC) to study the potential impact of implementing Europe's 20-20-20 climate policy. The results show that the economic costs of implementing the policy are only moderate and within the range of recent empirical evidence....

This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...

This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...

In this paper, we use a computable general equilibrium model (WIATEC) to study the potential impact of implementing Europe's 20-20-20 climate policy. The results show that the economic costs of implementing the policy are only moderate and within the range of recent empirical evidence....

The concept of virtual water – the amount of water used during the entire production chain of goods – represents a new tool for policymakers in water-scarce countries to shape policies in ways that improve water use efficiency. The present study extends work on the virtual water concept by...

This paper demonstrates that the notion of environmental policy as a secondary trade barrier needs substantial modification when production pollution and consumption pollution coexist. The paper first focuses on local pollution and unilateral tax adjustments, showing that, under certain...

This paper identifies a mechanism through which trade restrictions and counter-restrictions affect the climate. A series of tariffs and retaliatory export taxes increases the level of global emissions if a country using export taxes obtains considerable real income gains from local air pollution...

The concept of virtual water – the amount of water used during the entire production chain of goods – represents a new tool for policymakers in water-scarce countries to shape policies in ways that improve water use efficiency. The present study extends work on the virtual water concept by...