Environmental Degradation as an Incentive for Trade

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Environmental Degradation as an Incentive for Trade

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Leger, Lawrence A

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Lawrence A. Leger

Abstract

A modified Heckscher-Ohlin-Samuelson model is used in which industries are allocated by historical accident to geographical regions and agents care about their environment. Incentives for international trade arise when economies with identical factor endowments and geophysical characteristics differ in the allocation of industries to regions, and economies will tend to export goods produced in regions with higher environmental assimilative capacity. Copyright 1995 by Blackwell Publishing Ltd.

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Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 3 (1995)
Issue (Month): 3 (October)
Pages: 307-18
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Handle: RePEc:bla:reviec:v:3:y:1995:i:3:p:307-18

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Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
Robert Kohn, 1998. "Environmental Protection by One or Both Trading Partners in a Heckscher-Ohlin-Samuelson Model," Open Economies Review, Springer, vol. 9(4), pages 327-342, October. [Downloadable!] (restricted)

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