Does Trade Liberalization Increase Global Pollution?
Resource and Energy Economics
In this paper we consider a simple duopoly market in which a home firm and a foreign firm use labor to produce an identical product and supply it to the home market. Firms emit pollution as a by-product of production. We show conditions under which international trade liberalization decreases (increases) the global pollution.
“Does Trade Liberalization Increase Global Pollution?” (with H. Beladi), Resource and Energy Economics 33, 2011: 172-178.