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Environmental Degradation as an Incentive for Trade

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  • Leger, Lawrence A

Abstract

A modified Heckscher-Ohlin-Samuelson model is used in which industries are allocated by historical accident to geographical regions and agents care about their environment. Incentives for international trade arise when economies with identical factor endowments and geophysical characteristics differ in the allocation of industries to regions, and economies will tend to export goods produced in regions with higher environmental assimilative capacity. Copyright 1995 by Blackwell Publishing Ltd.

Suggested Citation

  • Leger, Lawrence A, 1995. "Environmental Degradation as an Incentive for Trade," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 307-318, October.
  • Handle: RePEc:bla:reviec:v:3:y:1995:i:3:p:307-18
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    Cited by:

    1. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics.
    2. Zaman, Rubaiya, 2012. "CO2 Emissions, Trade Openness and GDP Percapita : Bangladesh Perspective," MPRA Paper 48515, University Library of Munich, Germany.
    3. Robert Kohn, 1998. "Environmental Protection by One or Both Trading Partners in a Heckscher-Ohlin-Samuelson Model," Open Economies Review, Springer, vol. 9(4), pages 327-342, October.
    4. Philip L. Paarlberg & Maury Bredahl & John G. Lee, 2002. "Multifunctionality and Agricultural Trade Negotiations," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 322-335.

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