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Environmental Policy, Population Dynamics and Agglomeration


  • Elbers Chris

    () (Vrije Universiteit Amsterdam)

  • Withagen Cees

    () (Free University Amsterdam/Tilburg University)


We present and discuss a simple model of international trade in agricultural and manufactured commodities. Production of the latter takes places under monopolistic competition, and causes pollution. We incorporate mobility of skilled labor, the input in the manufacturing sector. One of the main findings is that pollution and environmental policy tend to countervail clustering that would occur in their absence.

Suggested Citation

  • Elbers Chris & Withagen Cees, 2003. "Environmental Policy, Population Dynamics and Agglomeration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-23, December.
  • Handle: RePEc:bpj:bejeap:v:contributions.3:y:2004:i:2:n:3

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    References listed on IDEAS

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    7. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
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    12. Klaus E Meyer, 1995. "Direct Foreign Investment in Eastern Europe the Role of Labor Costs," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 37(4), pages 69-88, December.
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    Cited by:

    1. Jota Ishikawa & Toshihiro Okubo, 2008. "Greenhouse-gas Emission Controls and International Carbon Leakage through Trade Liberalization," Global COE Hi-Stat Discussion Paper Series gd08-013, Institute of Economic Research, Hitotsubashi University.
    2. Efthymia Kyriakopoulou & Anastasios Xepapadeas, "undated". "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," DEOS Working Papers 1017, Athens University of Economics and Business.
    3. Silva, Emilson C.D. & Zhu, Xie, 2009. "Emissions trading of global and local pollutants, pollution havens and free riding," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 169-182, September.
    4. John Feddersen, 2012. "Why we can't confirm the pollution haven hypothesis: A model of carbon leakage with agglomeration," Economics Series Working Papers 613, University of Oxford, Department of Economics.
    5. Eppink, Florian V. & Withagen, Cees A., 2009. "Spatial patterns of biodiversity conservation in a multiregional general equilibrium model," Resource and Energy Economics, Elsevier, vol. 31(2), pages 75-88, May.

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