This paper examines how the opening of trade affects a countryfs welfare in the context of an international polluting duopoly model with transboundary stock pollution. In this framework, we show that trade liberalization can have quite different welfare implications, depending on the mode of international competition and the magnitudes of international transportation coefficients of pollutant emissions and decay rates of pollutant stocks in respective countries, as well as on the values of other environmental and economic variables.
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Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number
32.
Find related papers by JEL classification: F10 - International Economics - - Trade - - - General F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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