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


  • Kenji Fujiwara
  • Norimichi Matsueda


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. Copyright © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd.

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

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    References listed on IDEAS

    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.
    2. Yordying Supasri & Makoto Tawada, 2007. "Endogenous Timing in a Strategic Trade Policy Game: A Two-Country Oligopoly Model with Multiple Firms," Review of Development Economics, Wiley Blackwell, vol. 11(2), pages 275-290, May.
    3. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
    4. 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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    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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