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An Analysis Of Transboundary Pollution And The Gains From Trade: Reconsideration

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  • Nobuhito Suga

Abstract

. This paper investigates the effects of transboundary pollution on trade and welfare in a two‐country, two‐good, one‐factor model in which pollution is treated as a negative cross‐industry externality. It is shown that trade may improve countries’ natural environment and consequently raises the countries’ welfare if a comparative advantage in a pollution‐producing good is held by a country that greatly surpasses the other in pollution abatement technology. This result has not been obtained from existing models of this type.

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  • Nobuhito Suga, 2007. "An Analysis Of Transboundary Pollution And The Gains From Trade: Reconsideration," Pacific Economic Review, Wiley Blackwell, vol. 12(2), pages 225-235, May.
    • Handle: RePEc:bla:pacecr:v:12:y:2007:i:2:p:225-235
    DOI: 10.1111/j.1468-0106.2007.00351.x
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    Cited by:

    1. Winston W. Chang, 2017. "World Trade and the Environment: Issues and Policies," Pacific Economic Review, Wiley Blackwell, vol. 22(3), pages 435-479, August.
    2. Gang Li & Akihiko Yanase, 2022. "Trade, Resource Use and Pollution: A Synthesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 861-901, November.

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