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International Trade and the Environment: A Framework for Analysis

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Brian R. Copeland
M. Scott Taylor

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Abstract

This paper sets out a general equilibrium pollution and trade model to provide a framework for examination of the trade and environment debate. The model contains as special cases a canonical pollution haven model as well as the standard Heckscher-Ohlin-Samuelson factor endowments model. We draw quite heavily from trade theory, but develop a simple pollution demand and supply system featuring marginal abatement cost and marginal damage schedules familiar to environmental economists. We have intentionally kept the model simple to facilitate extensions examining the environmental consequences of growth, the impact of trade liberalization, and strategic interaction between countries.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8540.

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Date of creation: Oct 2001
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Handle: RePEc:nbr:nberwo:8540

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F1 - International Economics - - Trade
H4 - Public Economics - - Publicly Provided Goods

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  1. Frankel, Jeffrey, 2008. "Global Environmental Policy and Global Trade Policy," Working Paper Series rwp08-058, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  2. Jeffrey A. Frankel & Andrew K. Rose, 2002. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," NBER Working Papers 9201, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Pierpaolo Battigalli & Giovanni Maggi, 2003. "International agreements on product standards: an incomplete-contracting theory," Working Papers 229, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
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  4. Jeffrey A. Frankel, 2003. "The Environment and Globalization," NBER Working Papers 10090, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Katrin Millock & Natalia Zugravu & Gérard Duchene, 2008. "The Factors Behind CO2 Emission Reduction in Transition Economies," Working Papers 2008.58, Fondazione Eni Enrico Mattei. [Downloadable!]
  6. Thierry, BRECHET & Marc, GERMAIN & Philippe, MONFORT, 2003. "SpŽcialisation internationale et partage de la charge en matire de rŽduction de la pollution," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2003019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  7. Alberto Gallegos & Pierre Regibeau, 2004. "Managed Trade, Trade Liberalisation and Local Pollution," Economics Discussion Papers 580, University of Essex, Department of Economics. [Downloadable!]
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