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Pollution Abatement and International Self-Sufficiency

Author

Listed:
  • Robert E. Kohn

    (Southern Illinois University)

  • Paul E. Chambers

    (Central Missouri State University)

Abstract

Dorfman (1973) anticipates increases in international trade when pollution abatement reduces damage to polluted industries. We simulate the effect of abatement with a Heckscher-Ohlin-Samuelson model of a production on production externality. Both countries are Pigouvian and two levels of abatement effectiveness are endogenized. Although more effective pollution abatement increases total world production of both goods, trade decreases as a proportion of total world production. Our results with possibly greater pollution abatement by larger countries are useful in explaining Rose's (1991) findings that post-1973 increases in real output for large countries are associated with declines in international trade.

Suggested Citation

  • Robert E. Kohn & Paul E. Chambers, 2000. "Pollution Abatement and International Self-Sufficiency," Eastern Economic Journal, Eastern Economic Association, vol. 26(2), pages 213-219, Spring.
  • Handle: RePEc:eej:eeconj:v:26:y:2000:i:2:p:213-219
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume26/V26N2P213_219.pdf
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    References listed on IDEAS

    as
    1. Dean, Judith M., 1992. "Trade and the environment : a survey of the literature," Policy Research Working Paper Series 966, The World Bank.
    2. H. David Robison, 1988. "Industrial Pollution Abatement: The Impact on Balance of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 21(1), pages 187-199, February.
    3. Carlo Perroni & Randall M. Wigle, 1994. "International Trade and Environmental Quality: How Important Are the Linkages?," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 551-567, August.
    4. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    5. Andrew K. Rose, 1991. "Why Has Trade Grown Faster than Income?," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 417-427, May.
    6. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
    7. Rauscher, Michael, 1997. "International Trade, Factor Movements, and the Environment," OUP Catalogue, Oxford University Press, number 9780198290506.
    8. Robert E. Kohn, 1991. "Global Pollution: A Heckscher-Ohlin-Samuelson Model of Pigouvian Taxation," Eastern Economic Journal, Eastern Economic Association, vol. 17(3), pages 337-343, Jul-Sep.
    9. James, Estelle, 1974. "Optimal pollution control and trade in collective goods," Journal of Public Economics, Elsevier, vol. 3(3), pages 203-216, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    International TRade; Trade;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment

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