This paper argues that it is countries’ historical experience with democracy, the democratic capital stock, rather than current levels of democracy that determines current climate change policies. Empirical evidence using data starting as far back as year 1800 for 87 countries, which together...

We suggest a novel perspective on the relationship between the stringency of environmental policies and foreign direct investment (FDI). We develop a political economy model with imperfect product market competition where local and foreign firms jointly lobby the local government for a favorable...

The global trading system is currently undergoing another round of trade liberalization (the Uruguay Round), and regional economic integration is occurring in several parts of the world (e.g., EU, NAFTA). A surge in the interest in the environment has made the trade-environment link a part of...

Recent studies suggest a considerable amount of horizontal strategic interaction amongst governments exists. The empirical approach in these studies typically relies on estimating reaction functions in a uni-dimensional policy framework, where a nonzero slope estimate suggests strategic...

The purpose of this paper is twofold. First, we show that pollution abatement subsidies, defined as subsidies on the inputs to pollution abatement, are inefficient instruments for pollution control. Whereas these types of subsidies are used in practice, the existing literature analyses only...

The global trading system is currently undergoing another round of trade liberalization (the Uruguay Round), and regional economic integration is occurring in several parts of the world (e.g., EU, NAFTA). A surge in the interest in the environment has made the trade-environment link a part of...