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Effects of Transboundary Pollution on the Mode of International Trade of a Polluting Good

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  • Kenji Fujiwara
  • Norimichi Matsueda

Abstract

By analyzing a strategic interaction between environmentally‐concerned governments, we examine how the competition mode of international polluting oligopoly is determined. We show that a resulting form of competition depends on the magnitudes of marginal damage costs and cross‐border spillover as well as on the degrees of similarities in these environment‐related parameters.

Suggested Citation

  • Kenji Fujiwara & Norimichi Matsueda, 2009. "Effects of Transboundary Pollution on the Mode of International Trade of a Polluting Good," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 1009-1018, November.
    • Handle: RePEc:bla:reviec:v:17:y:2009:i:5:p:1009-1018
    DOI: 10.1111/j.1467-9396.2008.00792.x
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    1. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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