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Pollution Abatement and International Self-Sufficiency

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  • Robert E. Kohn

    (Southern Illinois University)

  • Paul E. Chambers

    (Central Missouri State University)

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    Abstract

    Dorfman (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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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume26/V26N2P213_219.pdf
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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 26 (2000)
    Issue (Month): 2 (Spring)
    Pages: 213-219

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    Handle: RePEc:eej:eeconj:v:26:y:2000:i:2:p:213-219

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    Related research

    Keywords: International TRade; Trade;

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    References

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    1. James, Estelle, 1974. "Optimal pollution control and trade in collective goods," Journal of Public Economics, Elsevier, vol. 3(3), pages 203-216, August.
    2. Carlo Perroni & Randall M. Wigle, 1994. "International Trade and Environmental Quality: How Important Are the Linkages?," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 551-67, August.
    3. Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics.
    4. Robert E. Kohn, 1991. "Global Pollution: A Heckscher-Ohlin-Samuelson Model of Pigouvian Taxation," Eastern Economic Journal, Eastern Economic Association, vol. 17(3), pages 337-343, Jul-Sep.
    5. Dean, Judith M., 1992. "Trade and the environment : a survey of the literature," Policy Research Working Paper Series 966, The World Bank.
    6. Rauscher, Michael, 1997. "International Trade, Factor Movements, and the Environment," OUP Catalogue, Oxford University Press, number 9780198290506, September.
    7. Andrew K. Rose, 1990. "Why has trade grown faster than income?," International Finance Discussion Papers 390, Board of Governors of the Federal Reserve System (U.S.).
    8. 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.
    9. 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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