This paper analyzes the impact of tariff liberalization and foreign direct investment on pollution from a plant …-level perspective. It considers how globalization impacts plant-level investment in pollution abatement expenditure. Popular hypotheses … on trade and pollution cite the pollution haven effect - that trade leads to a worsening of environmental conditions in …

We construct a strategic trade model of an international duopoly, whereby production by exporting firms generates a … local pollutant. Governments use environmental policies, i.e., an emissions standard or a tax, to control pollution and for … demand, the cost of abatement and the damage caused from pollution. Under these modes of uncertainty we derive sufficient …

We construct a strategic trade model of an international duopoly, whereby production by exporting firms generates a … local pollutant. Governments use environmental policies, i.e., an emissions standard or a tax, to control pollution and for … demand, the cost of abatement and the damage caused from pollution. Under these modes of uncertainty we derive sufficient …

effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first …-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the "standard" free riding …

We build a two regions general equilibrium model with cross-border pollution and either international or only inter …-regional capital mobility. To control pollution each region uses public pollution abatement and issues either intra-regionally or inter … emission permits and we examine when and how cross-border pollution and the type of capital mobility affect these equilibrium …

consequence rising emissions in non-regulating countries. This so-called pollution haven or carbon leakage effect is of particular …