We use a spatial model of endogenous growth to investigate the likely impact of discriminatory integration among two advanced countries on their own welfare as well as on the welfare of an outsiders transition economy. On the one side, since per capita income convergence depends on relative...

We use a spatial model of endogenous growth to investigate the likely impact of discriminatory integration between two advanced insider countries on their own welfare as well as on the welfare of an outsider transition economy. A first point is that, since convergence in per capita income levels...

Climate change is a global problem that calls for, among other measures, global carbon taxation. As not all countries tax carbon, those with higher carbon taxes, such as the EU members, face the risk of "carbon leakage". The Carbon Border Adjustment Mechanism (CBAM) makes the carbon price of...