Market-based pollution control mechanisms such as pollution levy and cap and trade have received increasing attention … from both academics and practitioners. A good understanding of the optimal pollution price under these mechanisms is a … premise for regulators to make sound pollution control policies. In this paper, we propose a method for deriving the optimal …

) and the South (China) in the presence of a global pollution externality. Each country's share of global pollution depends … pressure on the US to raise environmental regulations on industry. Capital will move to China. Because the increased pollution …Bilateral trade and capital flows have increased substantially between the United States and China yielding economic …

(United States) and the South (China) in the presence of a global pollution externality. Each country's share of global … the increased pollution in China has global effects, the US may not benefit from the environmental restrictions and a …Bilateral trade and capital flows have increased substantially between the United States and China yielding economic …