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Effects of transboundary pollution on the mode of international trade of a polluting good

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Author Info

  • Kenji Fujiwara

    ()
    (School of Economics, Kwansei Gakuin University)

  • Norimichi Matsueda

    ()
    (School of Economics, Kwansei Gakuin University)

Abstract

This paper looks into potential determinants of the mode of international competition in a polluting good market by analyzing a strategic interaction between two environmentally concerned governments. From the equilibrium outcomes of our game based on an international duopoly model with transboundary pollution, we show how a resulting form of international competition can be influenced by, among other things, the magnitudes of the marginal damage cost and transboundary impact of pollution and also the degree of similarity between the two nations in these aspects.

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File URL: http://192.218.163.163/RePEc/pdf/kgdp30.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 30.

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Length: 20 pages
Date of creation: Apr 2007
Date of revision: Apr 2007
Handle: RePEc:kgu:wpaper:30

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Keywords: international duopoly; transboundary pollution; gains from trade.;

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  1. Markusen, James R., 1981. "Trade and the gains from trade with imperfect competition," Journal of International Economics, Elsevier, vol. 11(4), pages 531-551, November.
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