Pollution Abatement and International Self-Sufficiency
AbstractDorfman (1973) anticipates increases in international trade when pollution abatement reduces damage to polluted industries. We simulate the effect of abatement with a Heckscher-Ohlin-Samuelson model of a production on production externality. Both countries are Pigouvian and two levels of abatement effectiveness are endogenized. Although more effective pollution abatement increases total world production of both goods, trade decreases as a proportion of total world production. Our results with possibly greater pollution abatement by larger countries are useful in explaining Rose's (1991) findings that post-1973 increases in real output for large countries are associated with declines in international trade.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 26 (2000)
Issue (Month): 2 (Spring)
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More information through EDIRC
International TRade; Trade;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Department of Economics
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- Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
- H. David Robison, 1988. "Industrial Pollution Abatement: The Impact on Balance of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 21(1), pages 187-99, February.
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